[SMM Analysis]Domestic aluminum scrap prices continued to climb this week, with single-day adjustments in some regions reaching 300 yuan/mt. As of September 4, the SMM A00 price closed at 20,860 yuan/mt, up 250 yuan/mt WoW. Supply in the aluminum scrap market remained tight, particularly for aluminum tense scrap resources, where prices stayed firm, with mainstream offers excluding tax hovering between 17,300-17,800 yuan/mt. Baled UBC prices, supported by rigid demand, fluctuated within the range of 15,650-16,150 yuan/mt.

[SMM Aluminum Price Weekly Review: SHFE Aluminum Maintains Strong Performance During Peak Season Amid Domestic and Overseas Macro Tailwinds and Fundamental Recovery]

[SMM Aluminum Spot Market Midday Review: Futures Strengthened and Aluminum Prices Remained High, Spot Premiums/Discounts Continued Under Pressure] SHFE aluminum's morning trading center rose to around 20,870 yuan/mt. In east China, as aluminum prices increased, suppliers became more willing to sell, but downstream purchases were weak. Market transaction prices were at a discount of 20-10 yuan/mt against SMM prices. Today, the east China market selling sentiment index was 3.09, up 0.02 WoW; purchasing sentiment index was 2.71, down 0.03 WoW. Today, SMM A00 aluminum was quoted at 20,860 yuan/mt, up 110 yuan/mt from the previous trading day, at parity with the September contract and at a discount of 10 yuan/mt against the October contract.

[SMM Cast Aluminum Alloy Morning Comment: The Most-Traded Contract Rose 0.20% Overnight, Bulls Increasing Positions Dominated Futures] Aluminum prices adjusted narrowly yesterday, with the market holding steady and adopting a wait-and-see stance. Since the beginning of September, downstream consumption has shown a mild recovery trend, with demand continuing to improve, though the characteristics of the traditional peak season have not fully emerged. In the short term, ADC12 prices are expected to hover at highs, supported by costs. However, limited by factors such as modest demand recovery and increasing social inventory, further upside room for prices may be constrained.

Futures side, the most-traded SHFE aluminum 2510 contract opened at 20,780 yuan/mt in the previous trading day's night session, with a high of 20,840 yuan/mt, a low of 20,755 yuan/mt, and closed at 20,830 yuan/mt, up 0.19% from the previous close.

[SMM Cast Aluminum Alloy Morning Comment: Aluminum Scrap Supply Shortage Drives Prices Up, Downstream Consumption Shows Mild Recovery] Aluminum prices rebounded for three consecutive days, driving aluminum scrap prices to follow suit with a rapid increase of 100 yuan/mt. Driven by cost pressures, secondary aluminum producers generally raised quotations by 100 yuan/mt, with strong market willingness to adjust prices. Since September, downstream consumption has shown a mild recovery trend, with demand continuously improving though the traditional peak season characteristics have not fully emerged. In the short term, ADC12 prices are expected to hover at highs under cost support, but further upside room may be limited due to restrained demand recovery momentum and increased social inventory. The market should closely monitor raw material supply conditions, demand recovery pace, and policy-related impacts moving forward.

[SMM Cast Aluminum Alloy Morning Comment: The Most-Traded Contract Closed Lower Overnight, Tight Aluminum Scrap Supply Supports ADC12] Aluminum prices fluctuated rangebound, while the secondary aluminum market remained stable overall, with most quotations unchanged. Currently, aluminum scrap supply remains tight, driving up procurement costs for enterprises and supporting ADC12 prices. Downstream consumption shows a gradual recovery trend, but enterprises report limited order growth, as the peak season effect has yet to fully materialize. In the short term, ADC12 prices are expected to hover at highs due to cost support, though upside room is constrained by sluggish demand recovery and rising social inventory. Subsequent focus should center on raw material supply conditions, demand recovery progress, and policy guidance.

Futures side, during the previous trading day's night session, the most-traded SHFE aluminum 2510 contract opened at 20,695 yuan/mt, reached a high of 20,740 yuan/mt, a low of 20,695 yuan/mt, and closed at 20,725 yuan/mt, up 0.05% from the previous close. LME aluminum opened at $2,609.5/mt, reached a high of $2,625/mt, a low of $2,600.5/mt, and closed at $2,609.5/mt, up 0.27% from the previous close.