[Aluminum Scrap and Secondary Aluminum Weekly Review: Inventory Buildup from Lower Costs and Off-Season, ADC12 Consolidates on a Subdued Note] China's aluminum scrap market prices this week followed the decline in primary aluminum, showing a pattern of weakness at high levels, but cost support still existed, limiting the downside. On August 20, SMM A00 spot aluminum closed at 23,600 yuan/mt, down 520 yuan/mt from 24,120 yuan/mt last Thursday. Dragged by the decline in primary aluminum prices, aluminum scrap prices...

Construction Materials Social Inventory: According to SMM survey, the total construction materials social inventory shifted from increase to decline this period. As of August 20, 2026, SMM construction materials social inventory stood at 5.5491 million mt, destocking by 206,600 mt WoW, down 3.59%. During the survey period, futures drifted higher, and market trading sentiment improved slightly compared to the earlier period, driving the overall inventory destocking. In addition, in some regions, high water levels in waterways hindered navigation, leaving most resources still stranded in transit, causing a significant drop in actual arrivals. The combined impact led to a faster pace of social inventory destocking this period. Going forward, attention should be paid to inventory pressure from concentrated arrivals after navigation resumes. Regional Social Inventory: Currently, inventory performance across regions continued to diverge. East China stood out in destocking, mainly due to the phased shipping suspensions in Huzhou, Jiaxing and other places, which caused a sharp drop in construction materials arrivals in Hangzhou, while demand remained largely at the prior level, resulting in a notable WoW destocking. In the Northwest region, due to continuous resource outflows from local steel mills, in-province deployment decreased, and inventory continued to destock. In Southwest China, Central China, and South China, sentiment recovered intermittently driven by futures, and downstream clients' willingness to purchase strengthened slightly, edging inventory down.

According to SMM statistics, total construction steel inventory this period was 8.3259 million mt, down 217,100 mt MoM (-2.54% MoM), shifting from increase to decline. Both mill inventory and social inventory destocked to varying degrees. Social inventory destocking accelerated notably as arrivals dropped. With the dock closure now lifted, subsequent concentrated arrivals of construction steel may lead to social inventory accumulation.

[SMM Silicon-based PV Morning Brief: Solar Cell Market Diverges, EVA Prices Move Sideways] The solar cell market showed divergence, with quotes for different sizes moving in different trends. For 210N cells sold to the Chinese market, earlier high prices lacked support from actual orders, so producers lowered their quotes, and prices pulled back slightly to 0.327-0.343 yuan/W. Quotes for 183 and 210R cells were largely stable, as producers stopped pushing up high prices. Affected by price adjustments by some enterprises, the high end of the price range narrowed, while the low end moved up simultaneously. Currently, the 210R price range is 0.327-0.356 yuan/W, and the 183 price range is 0.325-0.361 yuan/W. Overall, demand outside China supported 183 and 210R cells, while weak domestic procurement weighed on 210N. In the short term, the futures market diverged, and changes in actual order transactions need to be closely tracked.

India’s average daily maximum power demand increased by approximately 9.4% year on year during the first half of August 2026, while total electricity generation rose by around 7.6%. Renewable generation surged by approximately 39% to 17.3 TWh, but hydropower output fell by around 17% to 11 TWh, requiring coal-fired generation to increase by approximately 6% to 58.1 TWh. Higher coal-fired output accelerated the drawdown of power plant inventories. Coal stocks monitored by the Central Electricity Authority declined from 38.01 mnt on 31 July to 34.71 mnt on 16 August, a reduction of approximately 3.31 mnt, or nearly 9%. However, the number of plants with critical stocks increased only from 31 to 32, while daily coal receipts of around 2.42 mnt on 16 August marginally exceeded consumption of approximately 2.40 mnt. The situation therefore indicates localised logistical and inventory pressure rather than a nationwide coal shortage.

[Macro Expectations Repeatedly Disturb, Aluminum Prices Consolidate with Upside Encountering Resistance] Overall assessment: Short-term aluminum prices are expected to mainly consolidate, with upside room somewhat capped by expectations of production resumptions.