In H1, the industry showed distinct characteristics: upstream raw material imports experienced a mix of hot and cold trends, while mid-and downstream aluminum processing product exports saw explosive growth. Diverging domestic and overseas demand, shifting overseas manufacturing orders, and changes in the overseas raw material supply landscape are jointly reshaping the trade pattern of China's aluminum industry chain.

CITIC Dicastal has revised its aluminum alloy wheel supply agreement, increasing annual related-party purchase caps to RMB 11 billion in 2026, RMB 12 billion in 2027 and RMB 13 billion in 2028. The company said the higher limits reflect rising aluminum prices, stronger demand for aluminum wheels driven by the EV sector and higher expected shipment volumes. The new agreement covers only finished aluminum alloy wheels and excludes raw material purchases, while transactions will remain subject to market pricing and regulatory oversight.

In May, China's aluminum fabrication industry recorded an overall PMI of 50.8%, barely staying above the 50 mark but pulling back significantly by 3.1 percentage points from April. Industry sentiment slid from the edge of expansion territory toward the critical threshold, with structural divergence intensifying further.

This week, the operating rate of China's leading downstream aluminum processing enterprises was 64.1%, down 0.3 percentage points WoW.

Overall, the aluminum processing industry achieved a slight edge up in operating rate this week, driven by the recovery of export orders, the surge in energy storage demand, and the recovery of infrastructure-related orders. The industry maintained relatively strong resilience, and going forward, attention should be focused on the sustainability of export orders and the boosting effect of aluminum price trends on demand.

According to reports, Kazakhstan has formally signed a tripartite cooperation memorandum with the US-based Open Element company and South Korea's Hands company, finalising the construction project of the country's first modern aluminum wheel manufacturing plant. This marks a critical step in the transformation of Kazakhstan's automotive parts industry toward high-end and localised production, and also serves as a significant milestone in deepening its international industrial cooperation and strengthening its industrial capabilities. The project is led by Kazakhstan's leading domestic automaker, Astana Motor Company, in collaboration with Open Element from the US and Hands from South Korea.