China's Secondary Aluminum Alloy Ingot Inventory Down 81 mt, Continues Mild Destocking Trend

[SMM Flash] According to CAAM data, auto production and sales in February totaled 1.672 million units and 1.805 million units, down 31.7% and 23.1% MoM, and down 20.5% and 15.2% YoY, respectively. In January-February, auto production and sales totaled 4.122 million units and 4.152 million units, down 9.5% and 8.8% YoY, respectively. In February, NEV production and sales totaled 694,000 units and 765,200 units, down 21.8% and 14.2% YoY, respectively. In January-February, NEV production and sales totaled 1.735 million units and 1.71 million units, down 8.8% and 6.9% YoY, respectively, with NEV sales accounting for 41.2% of total new vehicle sales.

[SMM Aluminum Morning Briefing: The Geopolitical Situation in the Middle East Remains Unclear, and Aluminum Prices Still Have Upward Momentum in the Short Term] Overall, macro geopolitical risks are providing support at the bottom. Although the continued buildup in domestic social inventory is exerting bearish pressure on aluminum prices, the geopolitical situation in the Middle East remains unclear. If the conflict continues, expectations for global aluminum supply to tighten are strong, and aluminum prices still have solid upward momentum. In the short term, aluminum prices are expected to hold up well.