SMM Aluminum Morning Meeting Summary: Peak Season Approaches with Improved Sentiment, Prices Supported Amid Pressures

Published: Sep 1, 2025 09:13

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[SMM Aluminum Morning Meeting Summary: Peak Season Nears with Marginal Consumption Improvement, Aluminum Prices Supported but Topside Pressure Remains] Macro front, expectations for US Fed interest rate cuts intensified and China's policy stimulus boosted domestic demand, creating an overall favorable sentiment that may enhance aluminum consumption prospects. However, the transmission of domestic policy support to actual consumption still requires time. Supply side, with the commissioning of limited replacement capacity, operating capacity showed minor growth, while production edged up slightly. The proportion of liquid aluminum is expected to rebound in September. Cost side, weekly total aluminum production costs saw minimal changes, with industry profits remaining high. Demand side remains the core focus for subsequent market attention. As the September-October peak season approaches, downstream operating rates displayed stronger recovery signs last week, with operating rates for aluminum extrusion and plate/sheet, strip and foil sectors showing varying degrees of increase. During the traditional September peak season, aluminum prices are more likely to rise than fall, but topside pressure persists.

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