[SMM Aluminum Express] This week, the operating rate at China's downstream aluminum processing industry leaders fell 0.2 percentage points WoW to 60.1%, extending its downward trend for several consecutive weeks. Off-season characteristics continued to deepen, with operations across all sectors generally weakening or holding steady at low levels. The aluminum processing industry remained weak this week, pressured by both deepening off-season effects and rebounding aluminum prices, as export support faded and domestic demand recovery was slow. The overall operating rate in August is expected to remain on a weak trend.

Overall, this week the aluminum processing industry remained in the doldrums under the dual pressure of deepening off-season effects and the aluminum price rebound. Export support faded, and recovery in domestic demand was slow. It is expected that the overall operating rate of the aluminum processing industry will maintain a weak trend in August.

On July 23, 2026, a delegation from Shanghai Metals Market (SMM) conducted an on-site visit to TRAN HONG QUAN METALLURGY Co., Ltd. (THQ) in Vietnam. The delegation included: • Logan Lu, CEO of SMM • Cason Lou, Director of Aluminum Processing, Marketing Department • Lexi Chen, Key Account Manager for Overseas Information Sales • Khai Yuen Chin, Senior Overseas Aluminum Analyst The two sides held in-depth discussions on the development of Vietnam’s primary aluminum projects, domestic aluminum supply capacity, supporting industrial infrastructure, and future market strategies. The visit also provided a clearer picture of the changes taking place across Vietnam’s aluminum industry. A new industrial landscape is gradually emerging—one built on resource advantages, driven by breakthroughs in primary aluminum production, and extending further into downstream processing and manufacturing. A Landmark Development: Vietnam Begins Producing Its Own Primary Aluminum On July 27, Vietnam’s first batch of aluminum ingots with a purity of 99.71% was successfully produced at THQ’s Dak Nong aluminum smelter project. The facility is a pilot plant using electrolytic smelting technology to produce primary aluminum. This means that Vietnam now possesses not only abundant bauxite resources and alumina production capacity, but also the capability to produce primary aluminum. For the first time, the country has established a complete “bauxite–alumina–primary aluminum” value chain. The significance of this development goes beyond the addition of a new aluminum smelter. More importantly, it indicates that Vietnam is beginning to move away from a resource-export-oriented model and toward higher-value materials production and industrial processing. Three Major Changes Are Reshaping Vietnam’s Aluminum Value Chain 01 From Resource Exports to Domestic Processing Vietnam holds significant bauxite reserves, with particularly strong resource advantages in the Central Highlands. In the past, Vietnam largely relied on alumina exports while continuing to import substantial volumes of primary aluminum. Going forward, a greater proportion of domestically produced alumina is expected to enter the electrolytic smelting process, allowing more industrial added value to remain within Vietnam. This transition is also consistent with Vietnam’s broader efforts to promote the deep processing of mineral resources and upgrade its manufacturing sector. 02 From Individual Projects to an Integrated Industrial Value Chain The supporting infrastructure developing around Vietnam’s alumina and aluminum projects includes: • Reliable power supply systems • Supporting industrial park infrastructure • Raw material supply networks • Downstream aluminum processing capacity • Port and logistics facilities Together, these factors support more than the operation of a single factory—they create the foundation for an entire industrial cluster. Vietnam is gradually establishing an interconnected industrial structure spanning resource development, smelting, processing, and manufacturing. 03 From Cost Advantages to Regional Supply Chain Advantages For companies evaluating Vietnam today, its importance lies not only in production costs but increasingly in its strategic position within regional supply chains. Vietnam connects with China’s supply chain, the broader ASEAN market, and export routes to Europe and the United States. It is also attracting the relocation and expansion of industries including new energy, electronics, and automotive manufacturing. This is why a growing number of international companies are reassessing the strategic value of Vietnam’s aluminum industry. It also represents an important window of opportunity for Chinese aluminum companies seeking to expand into the Vietnamese market. Tran Hong Quan Metallurgy Co., Ltd. Founded in 2000, Tran Hong Quan is a major privately owned diversified industrial group in Vietnam, with businesses spanning energy, trading, hospitality, metallurgy, and other sectors. Its subsidiary, Tran Hong Quan Metallurgy Co., Ltd. (THQ Metallurgy), is the investor and developer of the Dak Nong aluminum smelter project. The Dak Nong project is regarded as Vietnam’s first primary aluminum production project and represents a critical link between the country’s alumina resources and its downstream aluminum processing and manufacturing industries. Once operational, the project will produce aluminum ingots, aluminum slab ingots, billets, and other products. It is expected to contribute approximately US$700 million annually to the local economy, significantly strengthen Vietnam’s domestic primary aluminum supply capacity, and reduce the country’s dependence on imported aluminum. In 2026, the project completed its first power delivery and entered the integrated commissioning stage, marking a critical step toward the commercial production of primary aluminum in Vietnam. Join the Conversation at SMM AICE 2026 Connect with aluminum producers, processors, traders, manufacturers, certification organizations, industry associations and decision-makers from across Southeast Asia and the global market. Explore aluminum pricing, primary aluminum supply, processing technologies, low-carbon development, CBAM compliance and new opportunities for regional cooperation. Location: Ho Chi Minh City, Vietnam Date: November 19–20, 2026 Register now: bit.ly/AICE26 and secure your Super Early Bird Pass and save up to USD 200. Register before August 31, 2026. #SMMAICE2026 #AluminumIndustry #VietnamAluminum #AluminumPricing #SoutheastAsia

On July 24, 2026, a delegation from Shanghai Metals Market (SMM) visited the Vietnam Association of Foreign-Invested Enterprises (VAFIE). The delegation included: Logan Lu, CEO of SMM Cason Lou, Director of Aluminum Processing, Marketing Department Lexi Chen, Key Account Manager for Overseas Information Sales Khai Yuen Chin, Senior Overseas Aluminum Analyst The delegation held in-depth discussions with VAFIE representatives on Vietnam’s investment environment, cooperation with local investment promotion authorities, business resource connections, and potential collaboration on industry forums. VAFIE noted that it has actively participated in international forums and exhibitions related to Vietnam’s aluminum industry in recent years. As an important organization connecting the Vietnamese government, local industrial parks, and international investors, VAFIE has extensive government and corporate resources in areas including bauxite development, alumina projects, aluminum processing and manufacturing, and related industrial investment promotion. It is also committed to supporting regional economic development and industrial growth across Vietnam. SMM introduced its continued engagement in Vietnam and the broader Southeast Asian market, including its work on developing local pricing systems, conducting industry research, organizing international forums, and connecting companies with relevant business resources. Since July 3, 2026, SMM has launched a series of new price assessments covering Southeast Asian 6063 aluminum billet processing fees and CIF Southeast Asia premiums and discounts. Among them, the Vietnam 6063 Non-Homogenized Aluminum Billet Processing Fee and related price assessment have officially been launched. Both sides agreed that, as Vietnam’s manufacturing sector and foreign investment continue to expand, Chinese and Vietnamese companies have significant potential for cooperation in industrial development, project investment, market intelligence, and international exchanges. They also expressed their intention to pursue deeper cooperation in the future. Understanding the Logic Behind Chinese Aluminum Companies’ Expansion into Vietnam 01 Companies Need More Than Customers — They Need a Local Gateway In recent years, an increasing number of Chinese aluminum companies have turned their attention to Vietnam. Some are exploring opportunities in industrial parks, some are seeking aluminum processing projects, while others are establishing local supply chains. However, after entering the Vietnamese market, many companies discover that finding customers is not necessarily the greatest challenge. The real difficulty lies in identifying a reliable local platform that can connect them with government authorities, regional resources, and suitable project opportunities. In the past, Chinese aluminum companies considering expansion into Vietnam mainly asked: Are operating costs low enough? Which part of Vietnam is most suitable for our business? Today, their priorities are changing: Does the local government support the project? Who can help us turn the plan into a successful local operation? For Chinese aluminum companies, those that establish strong local connections earlier will be better positioned to capture opportunities arising from Vietnam’s industrial upgrading and the restructuring of regional supply chains. 02 Competition Is Not Only About Finding Opportunities — It Is About Execution As more Chinese aluminum companies begin expanding into Vietnam, the country’s policy environment, approval procedures, project licensing requirements, and local investment promotion rules are also evolving. Future competition will not simply depend on who identifies an opportunity first. It will increasingly depend on which companies possess stronger local networks, more accurate policy insights, and more efficient project execution capabilities. This is also a key reason why SMM AICE continues to deepen its presence in Vietnam. Through ongoing visits to companies, industry associations, and government institutions across Vietnam and Southeast Asia, SMM AICE aims to establish more transparent market intelligence, industry research, and international exchange platforms. These efforts are designed to help Chinese aluminum companies assess the Vietnamese market more accurately, reduce decision-making risks, and improve their ability to implement projects successfully. To help more Chinese aluminum companies gain an early advantage and capture emerging opportunities in Vietnam, SMM AICE Vietnam is coming with a major industry gathering. At the conference, SMM will officially launch the SMM Vietnam Aluminum Price and provide a detailed explanation of its pricing methodology. Join the Conversation at SMM AICE 2026 Connect with aluminum producers, processors, traders, manufacturers, certification organisations, industry associations and decision-makers from across Southeast Asia and the global market. Explore aluminum pricing, primary aluminum supply, processing technologies, low-carbon development, CBAM compliance and new opportunities for regional cooperation. ? Ho Chi Minh City, Vietnam ? November 19–20, 2026 Register now: bit.ly/AICE26 and secure your Super Early Bird Pass and save up to USD 200. Register before August 31, 2026.

Lightweight Intelligent Manufacturing, Green Future — Linking the New Aluminum Journey 2027 The 4th Central China (Zhengzhou) International Aluminum Industry Exhibition Date: October 15-17, 2027 Venue: Zhengzhou International Convention and Exhibition Center I. Introduction The Zhengzhou International Aluminum Industry Exhibition has been successfully held for three editions, with each edition receiving guidance and support from organizations including the Henan Provincial Development and Reform Commission, Henan Provincial Department of Industry and Information Technology, Henan Provincial Department of Commerce, Zhengzhou Municipal Government, China Nonferrous Metals Industry Association (CNIA), Zhengzhou Municipal Bureau of Industry and Information Technology, and Gongyi Municipal Bureau of Industry and Information Technology. The last edition was successfully held from October 15 to 17, 2025 at the Zhengzhou International Convention and Exhibition Center, attracting more than 200 enterprises from China and overseas, and comprehensively showcasing cutting-edge products and innovative solutions across the aluminum industry chain. During the exhibition, a total of six themed forums and 269 supply-demand procurement matchmaking sessions were held, drawing more than 20,000 professional visitors. The 4th Central China (Zhengzhou) International Aluminum Industry Exhibition 2027 (hereinafter referred to as the “Zhengzhou Aluminum Industry Exhibition”) will continue to adhere to the principle of “serving the industry, promoting exchange, and driving transformation” and will be grandly held from October 15 to 17, 2027 at the Zhengzhou International Convention and Exhibition Center. With the theme “Lightweight Intelligent Manufacturing, Green Future — Linking the New Aluminum Journey,” this edition will comprehensively upgrade its content and operation model, focusing on new materials, new equipment, new intelligent manufacturing, and new applications. It will build a three-in-one exhibition system of “premium brand for high-end aluminum applications + full-chain ecological closed loop + distinctive application scenarios,” supplemented by multiple targeted supply-demand networking sessions and high-end seminars to effectively ensure exhibition effectiveness and business conversion. We sincerely invite aluminum processing enterprises, equipment manufacturers, downstream application enterprises, scientific research institutions, and related service providers from China and overseas to gather in Zhengzhou and share new opportunities in the aluminum industry development. II. Organizational Structure Proposed Guidance: China Nonferrous Metals Industry Association (CNIA) Organizer: Henan Nonferrous Metals Industry Association Co-organizer: Henan Xiangyu Exhibition Service Co., Ltd. Henan Dianji Enterprise Management Consulting Co., Ltd. III. Exhibition Content and Innovation Aspects Will Be Comprehensively Upgraded Feature 1: Focusing on New Materials and Lightweighting to Build a “Premium Brand for High-End Aluminum Applications” An “Aluminum Deep Processing Boutique Pavilion” will be set up to deeply interpret the high value-added characteristics of aluminum semis. The exhibition area will systematically present high-end deep-processed products such as NEV aluminum, battery foil, and aluminum for 3C electronics, comprehensively driving the aluminum processing industry to leap from traditional building materials and packaging sectors toward high-tech, high-value-added directions, and highlighting the brand value of aluminum semis in high-end application fields. Feature 2: Building a “Full-Chain Ecological Closed-Loop Zone” to Panoramically Display the Life Cycle of the Aluminum Industry from Mine to Recycling A “Full-Chain Ecological Closed-Loop Zone” will be set up, taking the three dimensions of upstream resource security, secondary aluminum recycling and utilization, and comprehensive recovery of renewable resources as the main line, systematically showcasing the completeness and synergy of the aluminum industry ecosystem and highlighting the green, low-carbon, and recyclable development concept. Upstream aluminum ore enterprises from China and overseas will be invited to hold an aluminum ingot raw material supply-demand networking session. Feature 3: Curating an “Aluminum + NEVs and Robots” Distinctive Application Scenario Exhibition Area Focusing on the two innovative application hotspots of NEVs and robots, it will centrally showcase innovative solutions and typical application results of high-end aluminum plate/sheet, strip and foil in these fields, helping exhibitors accurately meet the demands of emerging industries and expand high-growth market space. IV. Exhibition Content This edition will adopt a “5+1” theme matrix, breaking away from the traditional single raw material zoning model, and set up the following six exhibition zones: (I) Premium Brand Showcase Zone for High-End Aluminum Applications 1. Automotive lightweight aluminum: doors, engine hoods, battery trays, wheel hubs, etc. 2. High-end aluminum foil series: battery foil, double zero foil, PV/semiconductor high-purity aluminum foil, electronic aluminum foil, pharmaceutical packaging foil. 3. Aluminum for aerospace and high-end equipment: ceramic aluminum new materials, mirror aluminum, aviation-grade aluminum plate. 4. Aluminum for 3C electronics and rail transit (mobile phone middle frames, high-speed rail carriage profiles, etc.) (II) Green, Low-Carbon and Secondary Aluminum Zone (Policy Hotspot Zone) 1. Aluminum scrap closed-loop recycling pre-treatment line: high-precision eddy current separators, X-ray sorting systems, integrated crushing and impurity removal equipment 2. High-efficiency regeneration melting and casting equipment: new-type double chamber furnaces, side-well reverberatory furnaces, regenerative combustion systems 3. Environmental protection dust removal systems: baghouse filters, SCR denitrification devices, and dioxin suppression technology 4. “Urban Mine” themed demonstration area: centralized display of secondary aluminum industrial parks (III) Smart Factory and Digital Transformation Zone (Future Trend Zone) 1. Industrial robots (palletizing, welding), intelligent stereoscopic warehouses 2. MES systems, AI quality inspection equipment, digital twin factory solutions (IV) High-End Manufacturing Equipment Zone Melting and casting equipment, extrusion/rolling equipment, surface treatment equipment (anodized, spraying), heat treatment equipment, testing instruments, auxiliary materials, etc. (V) Service and Support Zone Industrial park displays, logistics solutions, nonferrous metals futures / supply chain finance, university scientific research achievements transformation (VI) Aluminum + Distinctive Application Scenario Exhibition Zone (Immersive Experience) 1. NEV, battery parts, robots, and other innovative application displays 2. On-site touch and experience the actual application of aluminum semis in high-end fields V. Concurrent Events During the exhibition, multiple high-standard forums and networking events will be held to help enterprises broaden their horizons and connect with resources: 1. 2027 Central China International Aluminum Processing Innovation and Development Conference 2. 2027 Central China NEV and Robot Innovation Application Development Forum 3. 2027 Central China Aluminum Extrusion Industry Upstream-Downstream Cooperation Summit Forum 4. Aluminum Industry Intelligent Transformation and Digitalization Supply-Demand Networking Session 5. 2027 Secondary Aluminum Industry Chain Development Forum 6. The 2nd Futures-Physical Integration Forum to Boost High-Quality Development of the Aluminum Industry 7. The 1st “Central China Aluminum Valley” Cup – Aluminum Extrusion / Melting and Casting Technical Competition / Simulation Contest (Innovative Event) VI. Comprehensive Promotion to Precisely Invite Visitors (I) Industry media will periodically publish exhibition information: World Aluminum Network, Aluminum Plus Network, Aluminum Road Network, Henan Nonferrous Metals Network, China Nonferrous Metals, Nonferrous Metals Processing, China Nonferrous Metals Industry Technical Service Platform. (II) Online media continuous promotion: publicity and promotion on People’s Daily Online, Baidu, Sina, Toutiao, Douyin, WeChat, etc. (III) Precise database activation: integrating 300,000+ industry data, classified into A/B/C three levels, with one-on-one phone invitations for Category A covering core decision-makers to improve conversion rates. (IV) Embedding into downstream industry conferences: Automotive Engineering Annual Conference, New Energy Battery Lightweighting Seminar, Home Appliance Technology Conference, etc., with on-site delegation for invitations to reach end-use industry procurement and engineers. (V) Targeted invitations to industrial parks: in-depth visits to industry demonstration bases and aluminum material application industry clusters for “one-on-one” visits and distribution of invitation letters. (VI) Key invitations to VIP buyers: sending formal invitation letters to complete vehicles, parts, robot enterprise factories, aerospace enterprises, beer & beverage, packaging, construction, and large dealers, focusing on buyers’ core requirements, providing VIP channels and other value-added services to ensure effective matchmaking at on-site procurement meetings. (VII) Exhibitor customer invitation incentives: exclusive electronic invitation letters, VIP treatment for attending clients, recognition and next-edition discounts for exhibitors, encouraging exhibitors to actively invite customers and expand visitor scale. (VIII) Organization of group professional buyers: cooperating with industry associations and industrial park management committees in Henan and surrounding provinces to organize delegations of aluminum processing enterprises and downstream user enterprises to visit. Free bus transportation will be arranged for industrial parks or units organizing visiting delegations of over 30 people. (IX) Overseas investment attraction based on the Belt and Road Initiative, focusing on inviting aluminum semis purchasers from Central Asia and Southeast Asia as well as internationally renowned equipment manufacturers. Welcome to inquire at 13903820977 (same as WeChat)

India, though the world’s second-largest primary aluminum producer with an annual capacity exceeding 4.16 million mt, sees its roughly 3,500 downstream micro, small, and medium aluminum processing enterprises (MSMEs) trapped in a structural cost disadvantage caused by the import parity pricing mechanism for primary aluminum. This mechanism anchors domestic primary aluminum prices to an international benchmark plus tariffs, forcing downstream enterprises to pay import-equivalent prices even when purchasing locally produced metal. Yet these MSMEs support about 90% of employment in the aluminum value chain and supply critical materials to strategic sectors such as power transmission and transformation, renewable energy, railways, and EVs, while operating at margins of only about 5% and an operating rate of about 65%—a stark contrast to the nearly 98% operating rate and about 10% margins in the primary aluminum sector.