[SMM Aluminum Express News] Ma’aden’s Aluminium business reported Q2 2026 revenue of approximately US$1.01 billion, up 49% year on year, while EBITDA more than doubled to US$411 million, giving the segment an EBITDA margin of around 41%. The improvement was primarily driven by stronger aluminum pricing, with the average realised price reaching US$3,915/tonne, up 51% year on year, despite aluminum production declining slightly to around 242,000 tonnes during the quarter. Ma’aden expects aluminum market fundamentals to remain supportive, forecasting a global aluminum deficit of approximately 1.7 million tonnes for the remainder of 2026.

SPIC Inner Mongolia Company Huomei Hongjun Aluminum Power Company is actively advancing the mechanization upgrade of anode changing operations. By replacing traditional manual operations with multi-function unit grabs, it has achieved remote and precise cleaning of crust and sediment at the bottom of electrolysis cells. Operators control the entire process from a safe distance, fundamentally changing the previous high-risk mode of working close to high-temperature electrolysis cells with handheld shovels. Since the company launched the grab upgrade at the end of 2024, the results have been remarkable: the grab utilization rate has reached 87.8%, the average current efficiency of aluminum electrolysis cells has remained stable at 93.5%, anode changing workers have been reduced by one-third compared with previous levels, and labour intensity has dropped by more than 60%. According to estimates, each 0.1% improvement in current efficiency can raise annual aluminum production by more than 50 mt. Currently, the company is accelerating the repair and upgrade of the second batch of six multi-function unit grabs. Once all 12 units are put into use, anode changing operations will achieve a comprehensive upgrade that is more efficient and safer.

[Liquidity Tightening Concerns Ease Marginally; Aluminum Prices Under Pressure at High Levels in the Short Term] Overall assessment: On the macro front, the US July PPI and core PPI both declined YoY, coming in below expectations and the previous readings, further easing inflationary pressure. Market expectations for a US Fed interest rate hike in September have been lowered, and concerns over liquidity tightening have eased marginally. On the fundamentals side, aluminum ingot inventory has continued to decline, but a slowdown is expected in the second half of the month. The pace of production resumptions at Middle Eastern aluminum smelters has accelerated versus the market’s prior expectations, and the previously traded premium for tight supply is facing pressure to retrace. Although macro conditions recovering and continued destocking in the first half of August supported stronger aluminum prices, as market sentiment has shifted, aluminum prices are expected to be under pressure at high levels in the short term, and upside room will be constrained to some extent by expectations for production resumptions.

SMM, August 13: Raw material side: this week, trading activity in China's petroleum coke market was moderate, while market divergence intensified; low-sulphur petroleum coke prices continued to rise, while medium- and high-sulphur petroleum coke prices were under pressure. At CNOOC refineries, auction transaction prices for petroleum coke were steady to higher; purchasing demand from downstream anode material producers remained in place, boosting coke prices. PetroChina's in-factory inventory of low-sulphur petroleum coke in north-east China was low, and its EXW prices were raised by 50-60 yuan/mt this week. At Sinopec refineries, downstream purchasing demand recovered; supported by buying from anode material producers, low-sulphur petroleum coke cargoes in the Yangtze River region saw smooth shipments and continued to underpin the market, while Sinopec petroleum coke offers continued to be raised. Overall shipments from independent refineries were moderate. As downstream restocking at the beginning of the month came to an end, the rise in medium- and high-sulphur petroleum coke prices slowed, and some prices came under pressure. The latest SMM data showed that the #1 petroleum coke spot price index in north-east China came in at 4,602.78 yuan/mt (up 1.13% WoW), the #2 petroleum coke spot price index in Shandong at 4,281.67 yuan/mt (up 0.17% WoW), the #3 petroleum coke spot price index in Shandong at 3,822.90 yuan/mt (down 1.59% WoW), and the #4 petroleum coke spot price index in Shandong at 2,069.45 yuan/mt (down 0.90% WoW). During the week, some domestic refineries completed maintenance and resumed operations, lifting refinery operating rates; market supply continued to increase, but demand-side purchasing interest was moderate. In particular, anode material producers continued to buy, supporting further gains in low-sulphur petroleum coke prices; rigid restocking demand for carbon used in aluminum production remained, forming a floor for medium-sulphur petroleum coke. Petroleum coke prices are expected to remain divergent in the short term, with low-sulphur petroleum coke relatively firm and medium- and high-sulphur petroleum coke mainly consolidating. This week, the coal tar pitch market remained strong. As of this Thursday, the average coal tar pitch price was 4,960 yuan/mt, up 1.71% from the previous Thursday. Overall, cost support for prebaked anode remained in place this week. Supply side: prebaked anode producers continued to produce based on sales; new projects in Xinjiang, Guangxi and other regions were commissioned one after another, with new capacity being released continuously. Some producers saw operating rates pull back slightly due to maintenance, but the industry's overall supply capability improved steadily. Demand side: China's operating aluminum capacity remained high, providing stable rigid support for anode consumption. Exports: new aluminum projects in Indonesia continued to be commissioned, boosting China's anode exports. Overall, high operating rates in the aluminum sector effectively underpinned domestic demand, and the export market improved marginally; however, the concentrated commissioning of new capacity made supply grow slightly faster than demand, intensifying market competition. Commentary: This week, raw material prices in China's prebaked anode market diverged, and the industry's overall production cost edged down. According to SMM data, as of August 13, China's prebaked anode production cost was 5,697.23 yuan/mt, down 0.47% from the previous Thursday, mainly because weakening medium- and high-sulphur petroleum coke dragged down raw material costs, while firm coal tar pitch partially offset this. Looking ahead, cost-side floor support remains, but upward drivers are insufficient: low-sulphur petroleum coke is firm, medium- and high-sulphur petroleum coke are consolidating, and coal tar pitch prices are strong; overall, raw materials underpin anode prices but are unlikely to push costs upward. On the supply-demand front, high operating rates in the aluminum sector continued to underpin domestic demand, and export orders recovered at the margin, bringing incremental demand; however, the concentrated commissioning of new industry capacity and the continued expansion of supply further intensified market competition. Going forward, close attention should be paid to changes in supply-demand patterns and price trends of prebaked anode and upstream raw materials.

[SMM Aluminum Price Weekly Review: Mild Pullback in Inflation Eases Macro Anxiety, Production Resumptions Accelerate and Market Sentiment Turns]

[CPI Meets Expectations, Easing Macro Anxiety; Continued Destocking Provides Price Support] Overall assessment: On the macro front, the US July CPI and core CPI YoY growth rates slowed to 3.4% and 2.5%, respectively, both in line with market expectations. A mild pullback in inflation eased market concerns over further aggressive rate hikes by the US Fed. The momentum behind the short-term shot up in US Treasury yields weakened, and macro liquidity pressures eased somewhat, providing phased support for aluminum prices. The fundamental supply gap persisted, and aluminum ingot inventory continued to decline. On the supply side outside China, UAE-based EGA disclosed progress on resuming production at the AlTaweelah aluminum smelter: of the plant’s 1,262 pots, 18% have been restarted. The pace of production resumption has accelerated versus the market’s previous expectations, and the previously traded tight-supply premium is facing pressure to give back. In the short term, aluminum prices are expected to consolidate on a strong note, but upside room will be somewhat capped by expectations of production resumptions.