As voices from aluminium associations across US trade-allied nations grow louder, one consensus is becoming clear that the United States’ decision to increase tariffs on aluminium imports to 50 per cent is unlikely to benefit its global partners.

[SMM Aluminum Morning Meeting Summary: Escalating International Trade Frictions May Limit Domestic Price Declines Due to Resilient Consumption] Macro side, escalating China-US trade tensions and EU's concerns over US aluminum tariff hikes (to 50%) intensified market uncertainties. However, China's May manufacturing PMI rebound and improved export indicators provided demand support, with economic resilience potentially limiting declines. Aluminum prices faced short-term pressure, likely remaining in the doldrums. Fundamentals side, domestic aluminum operating capacity remained stable. Notably, increased liquid aluminum alloying ratios at some north China smelters reduced ingot casting volumes, affecting arrivals at major consumption hubs. Cost side, aluminum production costs rose WoW, with the average immediate complete cost reaching approximately 17,200 yuan/mt as of last Thursday, up 258 yuan/mt WoW. This 1.5% WoW increase primarily stemmed from ore supply disruptions driving alumina prices higher, squeezing smelter margins. Demand side, seasonal weakness emerged in some downstream sectors, with PV-related aluminum demand declining and automotive material demand expected to soften mid-to-late June. Construction aluminum demand remained lackluster, though aluminum wire and cable operating rates stayed elevated thanks to State Grid orders. Overall, while domestic macro sentiment remained positive, overseas uncertainties persisted. Fundamentals-wise, faster-than-expected aluminum ingot inventory drawdowns supported prices and spot premiums. Though seasonal weakness appeared in certain industries, the overall demand decline proved milder than anticipated, maintaining resilience. Subsequent focus should center on inventory and demand dynamics, with domestic aluminum prices likely to fluctuate rangebound amid mixed factors.

Russian Aluminum Company recently announced plans to establish a pilot facility for scandium oxide production at the Bogoslovsky aluminum smelter in Krasnoturinsk. The plant is expected to produce 1.5 mt of scandium oxide annually, which is particularly significant given the global annual production of scandium stands at 20-25 mt. Rusal noted that the project is currently in the pilot phase and has the potential to position the company as a global leader in scandium oxide production. As it transitions to commercial production, the facility's annual output is expected to increase to 19 mt.

[Baotou Inst Applies for Electroplating Nickel-Phosphorus Alloy Waste Liquid Regeneration Patent, Significantly Extending the Service Life of Electroplating Nickel-Phosphorus Alloy Plating Solution] Information from the National Intellectual Property Administration shows that Baotou Inst Rare Magnetic New Materials Co., Ltd. has applied for a patent titled "A Regeneration Method for Electroplating Nickel-Phosphorus Alloy Waste Liquid," with publication number CN 119392343 A and application date of January 2025. The patent abstract reveals that this invention discloses a regeneration method for electroplating nickel-phosphorus alloy waste liquid, in which the hypophosphite content exceeds 40 g/L, the phosphate content exceeds 15 g/L, and the total phosphorus element content exceeds 25 g/L. The regenerated plating solution provides the same performance as a new plating solution for plating workpieces and can significantly extend the service life of the electroplating nickel-phosphorus alloy plating solution.

SMM Morning Comment on Alumina: Recently, the weekly operating rate of alumina has rebounded slightly, and alumina supply has increased slightly. With the technological transformation and production cuts at aluminum smelters in Guangxi, Sichuan, and other regions, alumina demand has slightly decreased, and the previously tight alumina supply has improved compared to earlier periods. By the end of December, the alumina raw material inventory at aluminum smelters had rebounded slightly, while downstream restocking and purchasing enthusiasm weakened. The acceptance of high-priced spot alumina decreased, and with reports of some low-priced transactions, suppliers showed an increased willingness to sell. In the short term, spot alumina prices are likely to maintain a slight downward trend.