In accordance with the provisions and requirements of the Guiding Opinions of the General Office of the State Council on Creating a Favorable Market Environment to Promote Structural Adjustment, Transformation, and Efficiency Improvement in the Nonferrous Metals Industry (Guobanfa [2016] No. 42), the Notice of the Ministry of Industry and Information Technology on Matters Related to Capacity Replacement through Mergers and Restructuring for Aluminum Enterprises (MIIT Yuan [2018] No. 12), and other relevant documents, the capacity replacement plan for the 115,000 mt aluminum energy conservation, carbon reduction, emission reduction upgrading and renovation project of Guangyuan Hongchangsheng Aluminum Co., Ltd. is hereby publicized. The publicity period is from June 2 to June 16, 2026. Supervision by the public is welcome. If there are any objections to the content publicized, please report them to the Department of Economy and Information Technology during the publicity period.

SMM June 4 update: This week, the aluminum fluoride tender price from downstream benchmark enterprises was finalised, and aluminum fluoride prices declined. As of now, SMM aluminum fluoride prices closed at 11,280-11,700 yuan/mt; cryolite prices remained stable, with SMM cryolite quoted at 7,000-8,500 yuan/mt. Raw material side: This week, China's 97% fluorite wet powder market remained stable, with mainstream delivered transaction prices concentrated at 3,100-3,400 yuan/mt, and regional price spreads remained notable. Supply side, as mine operating rates in northern major producing areas continued to recover, domestic spot supply steadily increased; meanwhile, Mongolian imported fluorite cargoes arrived at ports successively and flowed into the market, further exacerbating the loose supply pattern. However, recent coal mine safety accidents in Shanxi triggered market expectations of stricter mine safety and environmental protection supervision, which may cause periodic disruptions to production pace at some mines going forward, and the market still held certain wait-and-see sentiment toward the supply side. Demand side performance remained weak. Downstream hydrofluoric acid enterprises, constrained by insufficient operating rates in end-use industries such as refrigerants and fluoropolymers, maintained just-in-time procurement for raw materials, with limited follow-up on large orders, and overall market trading atmosphere was sluggish. Affected by weak raw materials and insufficient end-use demand, the hydrofluoric acid market price center continued to shift downward, further weakening support for the fluorite market. Overall, under the combined influence of multiple bearish factors including domestic supply recovery, continuous supplementation of low-priced imported cargoes, and weak downstream demand, the overall supply-demand pattern remained loose, and fluorite prices are likely to continue weak consolidation in the short term. This week, China's aluminum hydroxide market held up well within a narrow range, with SMM aluminum hydroxide weighted average price at 1,656 yuan/mt, up 0.3% WoW. Upstream cost supported spot quotes, while downstream made purchases on demand with limited transaction volume growth. This week, domestic sulphuric acid stayed high and held up well. High sulphur costs combined with concentrated maintenance at multiple facilities and tight spot supply; although phosphate fertiliser downstream was in the traditional off-season, suppressing room for price increases, just-in-time chemical demand provided a floor, and short-term sulphuric acid prices are expected to continue fluctuating at highs with an overall firm pattern. Overall, this week aluminum fluoride's main raw materials were generally stable with slight rise. Rising aluminum hydroxide and sulphuric acid prices drove the industry's comprehensive cost center upward, and raw material price increases were difficult to pass through smoothly downstream, intensifying pressure on enterprise production costs. Supply side continued the pattern of "rigid high costs—sustained profit pressure—low operating rates." This week, sulphuric acid and aluminum hydroxide prices rose, the industry was generally in a state of losses, enterprise maintenance and flexible production increased, and the industry operating rate remained at a low level of around 40%, with limited effective incremental supply. Demand side, downstream operating aluminum capacity remained stable at high levels, providing rigid floor demand for aluminum fluoride, but aluminum enterprise procurement was dominated by just-in-time restocking and pushing for lower prices with a wait-and-see approach, with no additional incremental demand for now. Brief comment: Recently, the raw material market was generally stable with a strengthening trend. Within the week, the industry's comprehensive cost center rose, enterprise profit margins continued to be squeezed, and sustained losses dampened production enthusiasm. On the demand side, downstream aluminum enterprises still maintained just-in-time procurement. Within the week, the June benchmark aluminum enterprise aluminum fluoride tender price was officially finalised, down 200-220 yuan/mt WoW. Driven by the tender price reduction, market transaction price center shifted downward accordingly. Going forward, close attention should be paid to dynamic changes on the raw material cost side, as well as marginal adjustments in downstream aluminum enterprise procurement pace.

Overall market trading activity was sluggish. At month-end, the market maintained a steady posture, watching for the outcome of the new round of aluminum fluoride tender prices. However, as the raw material side showed signs of easing, prices are expected to be slightly under pressure next month. Going forward, close attention should continue to be paid to dynamic changes on the raw material cost side, as well as marginal adjustments in the procurement pace of downstream aluminum enterprises.

This week, overseas aluminum scrap and secondary aluminum markets continued to fluctuate at relatively high levels. Affected by Middle East tensions, tight shipping logistics and fluctuations in LME aluminum prices, overall market sentiment remained cautious. The industry generally continued to show a market pattern characterized by “strong cost support and downstream demand mainly driven by rigid procurement needs.” Aluminum scrap market In the aluminum scrap market, Malaysia’s mixed aluminum casting scrap Tense prices remained stable at USD 2,600/mt this week after rising last week, with overall market quotations relatively steady. Malaysia’s aluminum cable scrap Talon prices edged up slightly from MYR 14,250/mt (~USD 3,593/mt) to MYR 14,300/mt (~USD 3,605/mt). Meanwhile, baled used beverage can (UBC) prices saw a noticeable correction, falling by MYR 850 from MYR 10,500/mt (~USD 2,647/mt) to MYR 9,650/mt (~USD 2,433/mt). SMM indicates this price adjustment was mainly due to some companies restructuring their quotation systems and pricing mechanisms, rather than a significant weakening in end-user demand. In Thailand, Talon prices increased from THB 117,500/mt (~USD 3,601/mt) last week to THB 122,500/mt (~USD 3,755/mt), while baled UBC prices remained relatively stable around THB 85,500/mt (~USD 2,621/mt), indicating relatively limited overall market fluctuations. SMM analysis indicates that the overseas aluminum scrap market continues to be supported by tight supply conditions. Ongoing disruptions in the Red Sea and Strait of Hormuz continue to affect global aluminum scrap circulation, with shipping delays and rerouting still occurring in some regions, keeping freight and import costs elevated. Some market participants reported that European-origin scrap has been more heavily affected by shipping disruptions, leading buyers to gradually shift procurement preference toward U.S.-origin scrap with relatively more stable logistics, further supporting imported aluminum scrap prices. At the same time, local supply of high-quality aluminum scrap in Southeast Asia remains tight. Some downstream factories in Malaysia continue to increase their reliance on imported aluminum scrap, further reflecting that regional supply-side pressure has not eased significantly. SMM estimates that the domestic and overseas aluminum scrap price spread in China remains around RMB 2,500–3,000/mt, leaving arbitrage opportunities for certain products and providing continued support for aluminum scrap trading activity in Southeast Asia. On the demand side, overseas ADC12 producers and secondary aluminum enterprises are still mainly purchasing based on rigid demand. Although aluminum scrap prices remain at relatively high levels, downstream buyers have become more cautious compared with earlier periods, and transaction speeds for high-priced materials have slowed somewhat. Overall, the market continues to be dominated by procurement on a need-only basis. Secondary aluminum ADC12 market In the ADC12 market, Malaysia’s domestic ADC12 secondary aluminum alloy prices remained stable this week at MYR 13.30/kg (~USD 3,353/mt), while FOB prices held steady at USD 3,395/mt, with overall market trends remaining relatively stable. In Thailand, domestic ADC12 prices rose alongside higher LME aluminum prices, increasing from THB 110/kg (~USD 3,372/mt) last week to THB 112/kg (~USD 3,433/mt), while FOB prices remained largely stable around USD 3,370/mt throughout the week. SMM analysis shows that some ADC12 producers already have orders scheduled through July and August. While order-taking remains cautious, operations are generally stable. As a result, producers currently prefer maintaining stable quotations rather than continuing to aggressively raise prices. Some manufacturers are also retaining a certain level of spot inventory to cope with potential raw material supply fluctuations and unexpected order demand. In addition, some customers have recently begun delaying shipment schedules and slowing cargo pickups, mainly due to limited acceptance of high prices among end-users and continued market uncertainty regarding future price trends. In the Indian market, although Indian buyers are offering relatively higher prices, some companies still remain cautious toward concluding transactions. Overall, SMM expects overseas aluminum scrap and ADC12 markets to continue fluctuating at relatively high but stable levels in the short term. Future market direction will still depend on developments in the Middle East situation, shipping recovery conditions, LME aluminum price movements, and actual downstream order-taking and cargo pickup activity. Exchange Rate Reference: 1 USD = 3.96 MYR 1 USD = 32.62 THB

SMM May 21 update: This week, trading activity among China's aluminum fluoride enterprises turned sluggish, with aluminum fluoride prices holding steady. As of now, SMM aluminum fluoride prices closed at 11,480-12,000 yuan/mt; cryolite prices remained stable, with SMM cryolite quoted at 7,000-8,500 yuan/mt. Raw material side: Prices of core raw materials for aluminum fluoride diverged, while overall cost support remained relatively firm. This week, delivery-to-factory prices of 97% fluorite powder in China trended downward, with mainstream transactions concentrated at 3,300-3,500 yuan/mt. Low-priced sources in the north dipped to around 3,100 yuan/mt, with regional price spreads remaining pronounced. Supply side, operating rates at mines in major northern producing areas rebounded steadily, domestic spot supply continued to increase, and Mongolian imported fluorite cargoes kept arriving at ports and flowing into the market, further easing overall resource supply. Under these circumstances, resistance to transactions at high quoted prices intensified. Demand side, a strong wait-and-see sentiment prevailed among downstream industries, with insufficient follow-through on new orders. Downstream producers mainly focused on executing previously contracted orders, and actual trading activity in the spot market remained weak. Although the recent rise in hydrofluoric acid prices provided some positive sentiment for the fluorite market, coupled with delayed resumption of operations at Zhejiang mining areas and minor support from low inventory levels in certain regions, ample overall market supply combined with sluggish end-user procurement demand meant that fluorite powder prices were expected to remain slightly in the doldrums in the short term. Aluminum hydroxide prices edged down slightly, with the current SMM weighted average price at 1,651 yuan/mt, down 0.30% from last Thursday. The sulphuric acid market continued to rise. Currently, raw material sulphur circulation remained tight with prices continuing to climb. Supply side, some enterprises underwent maintenance shutdowns, tightening supply, while demand gradually weakened. Overall, sulphuric acid prices hovered at highs, with the market remaining relatively strong. In summary, prices of core raw materials for aluminum fluoride diverged, the industry's comprehensive cost center fluctuated at highs, and production pressure on enterprises remained difficult to alleviate. Supply side, the negative cycle of rigid high costs — deep losses — low operating rates continued. This week, raw material prices diverged, with fluorite pulling back slightly while sulphuric acid remained firm. Comprehensive costs stayed elevated, with widespread losses across the industry intensifying. Enterprise maintenance and flexible production increased, with the industry operating rate remaining at a low level of around 40%, limiting effective incremental supply. Demand side, downstream operating aluminum capacity remained stable at high levels, providing rigid floor demand for aluminum fluoride. However, aluminum enterprises' procurement was mainly limited to restocking for essential needs while pushing for lower prices, with no additional incremental demand for the time being. Brief comment: This week, aluminum fluoride raw material trends diverged, with comprehensive costs staying high and continuously squeezing enterprise profit margins. The industry continued under the triple pressure of "high costs, low profits, and low operating rates," making it difficult to boost production enthusiasm. The market currently lacked clear directional guidance, with a tug-of-war between upstream and downstream remaining stagnant. Transactions relied solely on rigid demand support, and a strong wait-and-see sentiment pervaded the market. Prices were expected to remain stable in the short term. Going forward, close attention should be paid to dynamic changes in raw material costs, as well as marginal adjustments in the procurement pace of downstream aluminum enterprises.

[SMM Cast Aluminum Alloy Morning Comment: Aluminum Scrap and Alloy Imports Both Dropped Sharply, Alloy Exports Hit Single-Month Record High] Imports of unwrought aluminum alloy were 73,500 mt, down 15.4% YoY and down 12.9% MoM; cumulative imports from January to April were 313,900 mt, down 14.6% YoY. Exports side, April unwrought aluminum alloy exports reached 46,300 mt, hitting a single-month export record high, up 179.7% YoY and up 68.9% MoM; cumulative exports from January to April were 111,200 mt, up 58.1% YoY. Since March, affected by Middle East geopolitical conflicts and ex-China supply disruptions, overseas aluminum alloy ingot prices continued to rise, with the price spread between domestic and overseas markets becoming increasingly inverted.