Some major mills added maintenance shutdowns, and May supply pressure is lower than previous expectations. Demand side, sheets & plates demand is expected to weaken marginally in mid-to-late May. Hot-rolled coil inventory is expected to continue destocking over the next 2–3 weeks, with limited accumulation of supply-demand imbalances before month-end in May. The energy premium outside China is unlikely to ease in the short term, hot metal production continues at elevated levels, and coil prices are expected to continue fluctuating at highs in the near term. The pullback in coking coal prices driven by expectations of easing U.S.-Iran tensions and the periodic weakening of hot-rolled coil export order-taking are expected to cause prices to come under pressure briefly, with limited downside.

On May 14-15, 2026, the SMM WCCE 2026 (4th) Wire & Cable Industry Development Conference and Industrial Exhibition will grandly open at the Suzhou International Conference Hotel, focusing on precise matchmaking across the cable industry chain. With full-chain resource integration and efficient supply-demand matching at its core, the exhibition builds a quality bridge for business negotiation and technical exchange among industry partners. Rooted in the non-ferrous metal deep processing sector and focusing on copper-based new material R&D and high-end metal product intelligent manufacturing, two strong enterprises have been deeply engaged in process innovation and quality upgrading. They will showcase high-end copper-based new materials and precision metal products at the exhibition, demonstrating hardcore strength through scientific and technological innovation, and fostering industrial cooperation through fine craftsmanship and premium products, jointly exploring new frontiers in the non-ferrous metal industry. Luohe Jinpusen Metal Technology Co., Ltd. was established on June 6, 2022, with a registered capital of 66 million yuan. It is a company integrating R&D, manufacturing, sales, and services of metal products. The company's total project investment was 260 million yuan, covering an area of 68 mu with a building area of 18,000 m². Jinpusen emphasizes technological innovation and R&D investment, possessing a professional R&D team and advanced production equipment. In accordance with internationally advanced copper rolling and processing technologies and process standards, the company has implemented the "Annual Production of 80,000 mt Copper Rod and 30,000 mt High-Purity Oxygen-Free Copper Wire Project" and the "Annual Production of 110,000 mt Non-Ferrous Metal Processing Project" . By introducing advanced copper rolling and processing technologies from in and outside China, Jinpusen has continuously improved product quality and performance. With scientific research innovation, process quality, and comprehensive services, the company has earned market recognition and client acclaim. Its products are widely used in military industry, automotive, State Grid Corporation of China, electronics, new energy, smart transportation, and many other fields. Business Scope: Using high copper content Grade 1 copper as raw material, the company is primarily engaged in the technical R&D, manufacturing, and sales of copper metal materials and related products; metal product manufacturing, processing, and sales; manufacturing, processing, and sales of bright low-oxygen copper rod, oxygen-free copper rod, copper busbar, high-precision copper wire, alloy composite copper wire, high-precision copper plate/sheet and strip, and copper pipe & tube; copper metal wire drawing processing, etc. Luohe Yuanheng New Materials Co., Ltd. was established on August 8, 2024, with a registered capital of 50 million yuan. It is a modern enterprise focused on the new materials sector. Yuanheng New Materials has introduced internationally advanced non-ferrous metal rolling and processing production lines, combined with independently developed precision processing techniques, enabling high-precision and high-efficiency rolling and processing of various non-ferrous metal raw materials. Its main products include bright low-oxygen copper rod, oxygen-free copper rod, anode plates, and copper metal wire drawing products, which are widely used in high-end manufacturing fields such as electronic information, aerospace, and new energy. In 2025, the company achieved an annual output value of 5.3 billion yuan, with annual tax payments of 450 million yuan. The output value is expected to reach 7 billion yuan in 2026. Yuanheng New Materials has always upheld the development philosophy of "Innovation, Quality, Green, and Win-Win" , committed to technological innovation and sustainable development. The company will continue to increase investment in R&D and resource recycling, deepen upstream and downstream cooperation, and strive to enhance core competitiveness, facilitating the green, intelligent, and high-end development of the new materials industry. May 14-15, 2026, Jiangsu · Suzhou International Conference Hotel . Friends from all sectors are welcome to attend the conference in person and visit the booths of Luohe Jinpusen Metal Technology Co., Ltd. and Luohe Yuanheng New Materials Co., Ltd. (E27) to experience up close the strength of high-precision copper semis intelligent manufacturing and the innovative charm of high-end new materials, explore new cooperation opportunities, and open a new chapter for the industry together. SMM WCCE 2026 (4th) Wire & Cable Industry Development Conference and Industrial Exhibition May 14-15 Jiangsu · Suzhou International Conference Hotel Participating enterprises: Qifan Cable, Kunyi Cable, Senyuan Cable, Sanwu Cable, Huili Cable, Wanma Co., Ltd., Xinhai High Conductivity, Chenfeng Yongliang, Xinhuang Group, Dongwu Futures, Guojia Conductor, Hongxing Meike, Dongfeng Cable, Qijia Industrial, Beijing Shougang Ferroalloy, Xinhongye, Yingtan Chaolong, Meichuangli, Jiuli Electric, Xinzi Nengke, Xindongang Electric, Aerospace Electric, Guochu Logistics, Jielüda, Jinhuijia, Xindian Aluminum Alloy, Gangwei Ultrasonic, Jinrui Qianyuan... Click to View ☛ ｜

Indonesian state-owned steel giant PT Krakatau Steel (Persero) Tbk (IDX: KRAS, hereinafter referred to as "Krakatau") released its 2025 consolidated financial statements on March 31, 2026. On the surface, the company recorded a net profit of 339.6 million USD (approximately 5.68 trillion IDR), its best performance since 2019. However, unpacking the core steel business reveals that the steel segment's operating loss in 2025 actually widened from 40.79 million USD in 2024 to 102.5 million USD.

According to SMM, new orders in the copper plate/sheet and strip industry have declined recently. However, as previously received orders remain sufficient, current production schedules of copper plate/sheet and strip enterprises are full, and the industry operating rate stays high.

[Geopolitical and Supply-Demand Factors Intertwined, SHFE and LME Aluminum Maintain a Range-Bound Weak Pattern in the Short Term] With the macro situation fluctuating, domestic aluminum prices underperformed LME aluminum under high inventory pressure. Attention should still be paid to whether the turning point in China's inventory can arrive smoothly.

This week, operating rates across sub-sectors of China's aluminum processing industry continued their overall weak trend. The post-Labour Day holiday effect, combined with wild swings in aluminum prices, led to varying degrees of WoW pullback in operating rates across most sectors, with the overall rate recorded at 64.2%. Specifically, aluminum plate/sheet and strip operating rate fell to 72.6%, aluminum foil edged down to 74.7%, aluminum wire and cable recorded 66.6%, primary aluminum alloy rose slightly to 58%, leading secondary aluminum enterprises dropped to 57.0%, and aluminum extrusion operating rate also slipped slightly to 56.1%. Demand side, post-holiday aluminum prices fell by 480 yuan/mt in a single day, causing some traders to incur book losses, with cargo pick-up sentiment generally subdued. Underperforming real estate terminal completions continued to drag on construction extrusions and the air-conditioner foil segment within aluminum foil. PV frame enterprises also reduced their May production schedules, and passenger NEV growth falling short of expectations placed certain constraints on primary aluminum alloy. Overall, the consumption side was gradually showing traditional off-season characteristics. Cost side, high aluminum prices suppressed downstream enterprises' willingness to stockpile, compliant aluminum scrap sources remained tight with prices staying elevated, secondary aluminum industry profits continued to be under pressure, and some enterprises had already fallen into losses. However, aluminum wire and cable export orders continued to climb, with April expected to approach historical highs. Within aluminum extrusion industrial orders, heat sinks and industrial machinery accessories performed relatively well. Within aluminum foil, demand for food packaging foil, pharmaceutical foil, and battery foil remained stable. Automotive aluminum sheets & plates orders also benefited from the YoY and MoM double growth in April passenger NEVs, maintaining a recovery trend. Overall, in the short term, the aluminum processing industry's overall operating rate still faces downward pressure. The demand off-season and cost pressure form a dual suppression, and operating rates across sectors are expected to be under pressure in May. However, strengthening export orders and structural recovery in certain industrial demand segments will provide some bottom support for the industry. Primary aluminum alloy: This week, the primary aluminum alloy operating rate was 58%, showing a slight recovery WoW, but the rebound remained limited. Structurally, aluminum consumption at some enterprises increased, driving the overall operating rate slightly higher. However, most enterprises continued to primarily execute long-term contracts as normal, with overall operations running steadily. Current aluminum prices remained at elevated levels, suppressing downstream enterprises' willingness to stockpile, with most enterprises maintaining low inventory operations. Additionally, passenger NEV growth falling short of expectations also resulted in relatively slow demand growth. Overall, the primary aluminum alloy operating rate is expected to remain at the current level next week. Aluminum plate/sheet and strip: The operating rate of leading aluminum plate/sheet and strip enterprises edged down 0.4 percentage points WoW from pre-holiday levels to 72.6% this week. On the operational front, production lines at leading aluminum plate/sheet and strip enterprises ran normally during the Labour Day holiday with a steady production pace, but initial signs of operational pressure emerged in the industry. Post-holiday, aluminum prices pulled back, with a single-day drop of 480 yuan/mt. Some traders and dealers incurred book losses after purchasing, and sentiment for picking up goods was generally low. By product, domestic end-use demand for can stock packaging remained stable; auto sheets & plates orders benefited from the recovery of passenger NEVs in April with both YoY and MoM growth, still in a recovery trend; 1-series common plates and civilian general aluminum semis saw weak orders due to delayed cargo pick-up for engineering orders and shrinking civilian demand. In the short term, constrained by factors such as wild swings in aluminum prices and pressure on common plate orders, downward pressure on the operating rate of leading aluminum plate/sheet and strip enterprises is gradually increasing in May. Aluminum wire and cable: The operating rate of China's aluminum wire and cable industry registered 66.6% this week, edging down 1 percentage point WoW from pre-holiday levels. Although top-tier enterprises still held some power grid orders, they proactively reduced production loads due to the holiday factor and order losses, resulting in a decline in capacity utilization rate. Currently, domestic power grid end-use demand still dominates consumption, but the concentrated cargo pick-up cycle has passed, providing limited support to the overall industry operating rate. In contrast, export orders for aluminum stranded wire climbed, and Q2 exports are expected to increase significantly this year. April exports are expected to approach or break historical highs, and May exports are expected to increase by 10,000-20,000 mt MoM. Export orders will provide support to industry operations. Aluminum extrusion: The operating rate of China's aluminum extrusion industry was 56.1% this week, down 0.4 percentage points WoW, showing a generally stable but weakening trend. By segment, for architectural extrusion, dragged by domestic real estate terminal completion progress falling short of expectations, engineering orders continued their weak trend this week, and demand growth in the home decoration doors and windows segment was limited, failing to provide effective support, slightly dragging down the overall operating performance of architectural extrusion. For industrial extrusion, downstream tier-one PV module enterprises' May production schedule plans contracted, and PV frame enterprises saw a decline in operating rates. Some Hebei frame enterprises chose to shut down for 5 days during the Labour Day holiday to offset order pullback and ease cost pressure, maintaining a relatively full production schedule after the holiday; some Anhui frame enterprises reported that orders on hand remained generally stable with no significant reduction, resulting in relatively limited drag on operations. Additionally, large Guangdong aluminum extrusion enterprises reported that recent orders for heat sinks, industrial machinery accessories, and other industrial extrusion products performed well, providing support to regional industrial extrusion operations. In the short term, the weakness in architectural extrusion and the structural recovery in industrial extrusion offset each other, and the aluminum extrusion operating rate is expected to show a stable and improving trend. Aluminum foil: This week, the operating rate of leading aluminum foil enterprises fell 0.3 percentage points WoW from pre-holiday levels to 74.7%. Order side, demand for food packaging foil, pharmaceutical foil, and battery foil remained stable, supporting the baseline operating rate. Air-conditioner foil was under pressure, with May orders on hand declining MoM, as demand was dragged down by factors including a sluggish real estate market, tapering of national subsidies, high inventories outside China, and capacity relocation. Both domestic sales and export schedules declined, and weak end-use demand is expected to pull down the overall aluminum foil operating rate. In the short term, demand for packaging foil and battery foil can still support the aluminum foil operating rate at a relatively high level, but the deep weakness in air-conditioner foil will set the stage for an overall pullback in the aluminum foil industry's operating rate in May. Secondary aluminum: This week, the operating rate of leading secondary aluminum enterprises in China fell 0.7 percentage points WoW to 57.0%. During the holiday, sampled major plants maintained normal production, but affected by some downstream enterprises being on holiday and declining orders, enterprises compressed their production pace, and operating levels pulled back slightly. Currently, both demand and raw materials exerted dual pressure on production: on one hand, May gradually entered the traditional consumption off-season, downstream procurement became more cautious, market transaction activity continued to decline, and manufacturers' order performance was poor; on the other hand, finished alloy ingot prices fell more than raw material prices, compliant aluminum scrap sources remained tight with prices fluctuating at highs, industry profits continued to narrow, and some enterprises even fell into losses, with operating rates passively under pressure. After the holiday effect fades next week, the operating rate is expected to recover slightly, but the demand off-season and cost pressure are unlikely to improve significantly in the short term, and the industry's overall operating rate still faces downward expectations. [Data source statement: Data other than public information is derived from public information, market communication, and SMM's internal database models, processed by SMM for reference only and does not constitute decision-making advice.]