[SMM Aluminum Morning Meeting Minutes: US September Inflation Data Falls Short of Expectations, Favorable Macro Environment Supports Stronger Aluminum Prices] During the night session on October 24, the most-traded SHFE aluminum contract opened at 21,150 yuan/mt, with the highest price at 21,250 yuan/mt and the lowest price at 21,120 yuan/mt, finally closing at 21,245 yuan/mt, up 0.09%. The night session showed a fluctuating upward trend, with the trading center rising to around 21,170 yuan/mt. From a technical perspective, the MA moving averages continued their bullish alignment (MA5: 21,201 > MA10: 21,081.50 > MA20: 21,009.25 > MA60: 20,900.63), while the MACD 4-hour candlestick chart showed expanding red bars, maintaining a golden cross (DIFF: 94.04, DEA: 65.59). In terms of trend, SHFE aluminum remains in an upward channel. Based on recent highs and lows (low: 20,640, high: around 21,310), resistance is expected in the 21,350–21,550 range, with support in the 20,650–20,850 range.

[SMM Cast Aluminum Alloy Morning Comment: Tight Aluminum Scrap Supply Drives Up Costs, Cast Aluminum Alloy Prices Hold Up Well but Demand Changes Require Attention] Currently, aluminum scrap supply in the market remains tight, pushing procurement costs even higher. To ensure order fulfillment, enterprises are generally purchasing at high prices, while low-priced sources are scarce, leading to a continuous rise in overall production costs and consequently driving up quotations. Overall demand remains resilient, coupled with low finished product inventories at manufacturers and persistent pressure for order delivery, providing some support to market prices. In the short term, supported by rigid cost factors and a tight supply-demand balance, ADC12 aluminum alloy ingot prices are expected to hold up well. Going forward, close attention should be paid to raw material supply, consumption performance, and inventory changes.

The operating rate of leading downstream aluminum processing enterprises in China this week was 62.4%, down 0.1% WoW, showing a characteristic of "stabilization during the peak season with internal divergence." Specifically, the operating rate for primary aluminum alloy rose 0.6 percentage points to 59.0%, as enterprise production schedules became more aligned, supported by stable restocking from downstream, and is expected to remain stable with a slight upward trend in the short term. The operating rate for aluminum plate/sheet and strip fell 1 percentage point to 67.0%, impacted by declining curtain wall panel orders and high aluminum prices suppressing purchases, with weakening demand expectations strengthening, and it is anticipated to gradually enter the off-season range. The operating rate for aluminum wire and cable increased 0.4% to 64.4%, supported by the high-voltage sector, but tight shipments and slow cargo pick-up by State Grid limited the rebound potential. The operating rate for aluminum extrusion edged up to 53.7%, with automotive extrusion showing relatively robust growth driven by the year-end push for targets, while construction extrusion remained sluggish and PV extrusion faced production cuts. The operating rate for aluminum foil decreased 0.4 percentage points to 71.9%, with export stockpiling for holidays in packaging foil providing a buffer, but orders for some categories have started to weaken. The operating rate for secondary aluminum producers remained at 58.6%, with order resilience still present, but tight raw material supply, profit pressure, and policy uncertainties continued to constrain production flexibility. Considering the performance on both supply and demand sides, SMM expects the operating rate for the downstream aluminum processing industry to continue its stable trend next week.

11On October 17, the AICE 2025 SMM (14th) Aluminum Industry Annual Conference, hosted by SMM Information & Technology Co., Ltd. (SMM), successfully concluded in Zhengzhou, Henan!

[SMM Aluminum Morning Session Summary: Macro and Fundamentals Create Favorable Resonance, Aluminum Prices Expected to Fluctuate at Highs] During the night session on October 23, the most-traded SHFE aluminum contract opened at 21,270 yuan/mt, reached a highest price of 21,310 yuan/mt and a lowest price of 21,235 yuan/mt, and finally closed at 21,265 yuan/mt, up 0.64%. The night session overall showed a pattern of opening higher with a gap and then fluctuating, with the trading center hovering around 21,270 yuan/mt. From a technical perspective, the MA moving averages maintained a bullish alignment (MA5: 21,110 > MA10: 21,018 > MA30: 20,974 > MA60: 20,877), and the MACD 60-minute candlestick showed expanding red bars, maintaining a golden cross. The night session's highest price broke through the previous high of 21,200 yuan/mt. In the short term, prices are expected to hover at highs. Combined with the new high and low points (the monthly low at 20,640 and the high around 21,310), resistance is projected in the 21,400–21,580 range, while support is expected in the 20,730–20,930 range. Caution is advised against the risk of a retreat from highs.

[SMM Cast Aluminum Alloy Morning Comment: Cast Aluminum Alloy Ingot Experiences Two Consecutive Weeks of Weak Destocking, Shipment Conditions Improve] Currently, the supply of aluminum scrap in the market remains tight, and procurement costs have climbed further during the week. To ensure order fulfillment, enterprises generally purchase at high prices, with low-priced sources being scarce, leading to a continuous rise in overall production costs for enterprises, thereby pushing up quotations. Overall demand remains resilient, coupled with the fact that finished product inventories at manufacturers are currently at low levels and order fulfillment pressure persists, providing some support to market prices. In the short term, supported by rigid cost underpinning and a tight supply-demand balance, ADC12 aluminum alloy ingot prices are expected to hold up well. Subsequent attention should focus on raw material supply, consumption performance, and inventory changes.

[SMM Analysis]Tight Aluminum Scrap Supply Lifts Price Center, Highlighting Resilience in ADC12 Cost Support

[SMM Aluminum Price Weekly Review: Tightening Supply-Demand Fundamentals and Domestic Aluminum Ingot Destocking Support Aluminum Prices to Hold Up Well]