No Arbitrage, No Rally: U.S. Aluminum Premium Stabilizes as Global Prices Weaken [SMM Analysis]
LME 3M aluminium prices came under pressure after the U.S. tariff announcement on 2 April, driven by concerns over weakening global demand and rising trade uncertainty. High tariffs are expected to disrupt Southeast Asia’s exports of aluminium products to the U.S., dampening primary aluminium consumption. Risk-off sentiment also led to long liquidation, further weighing on prices.
Natural Gas Explosion Disrupts MSC Tin Supply, Resumption Time Undetermined
The supply of tin from MSC was disrupted due to a natural gas explosion, with the resumption time yet to be determined. According to a statement from Malaysia Smelting Corporation Berhad (MSC) on April 3, the natural gas supply to the company's smelter was interrupted following a natural gas pipeline explosion in Putra Heights, Selangor, Malaysia, on April 1, 2025, leading to a halt in tin supply. The time for resuming supply awaits further notice. Currently, there is no official timetable for the restoration of natural gas supply.
[SMM Weekly Survey on Aluminum Downstream] The operating rate of leading domestic aluminum downstream processing enterprises dropped back slightly by 0.8 percentage points WoW to 62.6%, ending an eight-week consecutive increase, and fell by 0.6 percentage points YoY.
【Exhibitor Introduction】Changzhou Borui Confirms Attendance at CLNB 2025 New Energy Industry Expo