Global Aluminum Market Review – April: Divergent Domestic & Overseas Trends and Marked Spot Structure Disparities The global aluminum market in April featured a core pattern of strength overseas and weakness domestically with diverging trends. The main Shanghai aluminum contract retreated from highs amid fluctuations, while LME aluminum maintained firm momentum supported by low inventories and geopolitical factors, with both markets seeing mild corrections toward month-end. Market drivers this month centered on macro policies, geopolitical conflicts, supply-demand fundamentals and inventory structures, with movements of key indicators further highlighting supply-demand imbalances between domestic and overseas aluminum markets. I. April Aluminum Price Review: Linked Movements with Distinct Strength Differentials Shanghai aluminum and LME aluminum shared similar price rhythms in April, both fluctuating higher initially before retreating. However, notable gaps emerged in upward momentum and correction ranges, with overseas aluminum prices significantly outperforming domestic counterparts. The average Shanghai-LME aluminum ratio dropped from 7.36 in March to 7.03 in April, reflecting stronger overseas aluminum pricing relative to Shanghai aluminum. The main Shanghai aluminum contract trended upward early in the month before softening overall, declining from elevated levels through range-bound trading. It opened lower at RMB 24,715 per ton at the start of the month and consolidated. Driven by escalating Middle East geopolitical tensions and rising LME aluminum prices, it surged to a monthly peak of RMB 25,675 per ton in mid-April. In late April, amid continuous domestic inventory accumulation, weaker-than-expected downstream demand, and risk-averse capital outflows ahead of the May Day holiday, prices corrected steadily. Closing at RMB 24,430 per ton on April 30, the contract recorded a monthly trading range of nearly RMB 1,360 per ton. LME March aluminum traded firmly with mild late-month declines. Opening at USD 3,459 per ton, it climbed to a monthly high of USD 3,672 per ton in mid-April, underpinned by overseas supply disruptions from geopolitical frictions and sustained inventory destocking. Prices edged down later due to fluctuating US-Iran negotiations, hawkish macro sentiment and profit-taking at high levels, settling at USD 3,476 per ton at month-end with a slight monthly loss. Overall, LME aluminum vastly outperformed domestic Shanghai aluminum. In terms of price drivers, geopolitics served as a shared upward catalyst for global aluminum prices, with production cuts and supply disruptions in the Middle East continuously boosting market risk aversion. Price divergence stemmed from dual disparities in macro policies and fundamentals: elevated domestic inventories and sluggish demand consistently capped aluminum price rebounds, while tight overseas inventories and strained spot supplies provided robust support for LME aluminum. II. Key Inventory Indicators: Divergent Inventory Movements and Contrasting Supply-Demand Landscapes As a core gauge of aluminum market supply and demand, domestic and overseas inventory trends diverged sharply in April, directly shaping the relative strength of regional aluminum prices. Domestic aluminum inventories kept rising and stood at a multi-year seasonal high. Social inventories maintained an upward trend throughout April, hitting 1.465 million tons in mid-month, the highest seasonal level in five years. A clear imbalance emerged between rigid supply release and lackluster downstream demand during the traditional peak "Silver April" period, leading to persistent spot market loosening. SHFE warehouse stocks expanded from 420,000 tons at the start of the month to 450,000 tons at month-end. Elevated warehouse stock levels further confirmed ample domestic spot supply, weighing continuously on aluminum prices. Overseas LME aluminum inventories declined steadily to a 20-year low. Total LME aluminum inventories fell from 410,000 tons to 370,000 tons in April, extending months of destocking to historic lows. Noticeable structural divergence persisted in inventory composition: Russian aluminum accounted for approximately 92% of total LME stocks in March, resulting in low market-circulating inventories and increasingly tight physical spot supply, which acted as the fundamental pillar for strong LME aluminum prices. In summary, April’s global aluminum market was governed by contrasting core dynamics: low overseas inventories, geopolitical disruptions and hawkish Federal Reserve policies on the overseas front, versus high domestic inventories, weak real demand and stable growth expectations domestically. This drove pronounced market divergence. Affected by intertwined internal and external factors, the main Shanghai aluminum contract corrected downwards from highs, while LME aluminum remained in a firm trading range, backed by historically low inventories, a tight spot balance and geopolitical risk premiums.

According to POSCO’s Q1 2026 earnings call, the company has introduced its third interim shareholder return policy and shifted from a free-cash-flow-based approach to a more earnings-linked framework. The new policy targets a shareholder return ratio of 35%-40% of adjusted net profit attributable to controlling interests, to be delivered through a mix of cash dividends and share buybacks or cancellations. POSCO said the change is intended to improve payout visibility while balancing growth investment and shareholder returns.

On April 14, Ye Jianhua, Director and Supervisor of the Industry Research Department of SMM Information & Technology Co., Ltd. (SMM), Feng Chundi, Expert of the SMM Industry Research Institute, and Wu Tao, SMM Copper & Tin Overseas Marketing Manager, visited Chambishi Copper Smelter Limited (CCS) for exchange and survey, where they received warm hospitality from CCS leadership. During the visit, both parties engaged in pragmatic communication based on their respective core businesses. Leveraging its core strengths in non-ferrous metal price index R&D, industry chain big data monitoring, copper market analysis, in-depth industry research, and global non-ferrous resource connectivity, SMM shared insights on international copper market operating logic and price trend analysis, in the context of the current global copper smelting supply-demand pattern, raw material procurement landscape, and TC fluctuation trends. As a key copper smelting producer outside China, CCS provided a detailed introduction to its production and operation status, smelting process advantages, capacity release pace, raw material procurement, and product exports layout, elaborating on practical experience of ex-China copper smelters in production management, cost control, green production, and localized operations. Meanwhile, both parties exchanged views on common industry topics including development pain points of copper smelting outside China, raw material supply security, finished product circulation and trade, industry policy changes, and low-carbon smelting development trends. They also reached preliminary consensus on future directions such as industry chain information sharing, market data sharing, joint market analysis, and industry resource coordination, laying a solid foundation for deepening regular exchanges and promoting high-quality collaborative development of the copper smelting industry chain. Introduction to Chambishi Copper Smelter Limited (CCS) Chambishi Copper Smelter Limited (CCS) is the first large-scale modern pyrometallurgy copper smelting enterprise invested, fully independently designed and constructed by China outside China. Located in the Zambia-China Economic and Trade Cooperation Zone, the company has 170 Chinese staff and 1,600 Zambian employees. CCS has consistently focused on its vision of "building an evergreen, world-class smelter," upholding the corporate spirit of "self-transcendence, continuous breakthroughs, and pursuit of excellence," benchmarking against first-class standards with meticulous craftsmanship, and continuously strengthening and optimizing enterprise management, with its comprehensive competitiveness steadily improving. As of the end of 2024, the company had produced over 3.3 million mt of copper products and 8.7 million mt of sulphuric acid, with cumulative sales revenue of approximately $21 billion, effectively driving local economic development in Zambia and becoming a shining pearl along the Belt and Road! Enterprise History and Development Achievements (Pursuing Excellence, Benchmarking Against the Best and Forging Ahead) To extend the industry chain and retain more added value locally, in 2006, China Nonferrous Metal Mining (Group) Co., Ltd. partnered with Yunnan Copper to introduce the advanced ISA copper smelting process to Zambia, with shareholding ratios of 60% and 40%, respectively. From the design stage, the company drew on successful experience in China and combined it with the characteristics of Zambian raw materials to re-optimize and innovate key processes and technologies of the ISASMELT process, strengthening system integration. This resulted in multiple innovative achievements, including "Integration Innovation and Application of ISASMELT Furnace" and "Comprehensive Automated Control System," which were awarded the First Prize for Scientific and Technological Progress by CNIA in 2010. The ISASMELT furnace campaign life broke world records multiple times, with the second campaign reaching 218 weeks and the third campaign reaching 244 weeks, becoming an international benchmark. In 2021 and 2022, the company's copper production exceeded the designed capacity of 250,000 mt for two consecutive years, making history. In 2024, production further surpassed 260,000 mt, setting a new historical record. In September 2013, the company was honored with the title of Advanced Collective of Central State-Owned Enterprises. In July 2021, it was successfully selected as a benchmark enterprise under the management of the State-owned Assets Supervision and Administration Commission of the State Council. Process Flow (Dedicated and Professional, Pursuing Excellence for Development) The company adopted the internationally advanced and mature process of "oxygen-enriched top-blown submerged bath smelting, electric furnace settling and separation, PS converter blowing, and anode furnace pyrometallurgy refining" to produce copper anode, and the "double-conversion double-absorption" process to produce sulphuric acid. Adhering to the concept of sustainable development, the company built a slag flotation recovery system with a daily processing capacity of 1,500 mt of slag and a bismuth recovery system with a daily processing capacity of 6 mt of flue dust, continuing to recover metals such as copper, cobalt, and bismuth from smelting slag and flue dust. Social Responsibility (Cooperation and Sharing, Giving Back to Society with Strong Responsibility) The company actively practiced its core values of "dedication, cooperation, and sharing," consistently focusing on its core business of copper pyrometallurgy smelting, cooperating extensively with upstream and downstream clients, and sharing development achievements with employees and local communities. Since its establishment, the company had cumulatively paid over $300 million in various taxes and fees in Zambia, created over 5,000 job opportunities, and cooperated with more than 300 local suppliers, contributing to Zambia's green, harmonious, and shared development. The company actively fulfilled its social responsibilities by increasing investment in social welfare programs for local communities in Zambia, covering infrastructure, education, healthcare, and sanitation. It sponsored the renovation of clinics in Kalulushi, the Bushifire Orphanage, and donated to build classrooms at Buyantashi School, Luato Market, Kankuko Bridge, Chibuluma Community Tennis Court, Chimfunshi Chimpanzee Rescue Center, and Modern Stars Football Club, among others. The cumulative investment exceeded $4 million, earning high praise from the local government and warm welcome from the public, and establishing a positive corporate image. The company actively promoted employee localization and continuously achieved skills transfer. The company invested over 5 million Kwacha, and externally carried out technical and non-technical training programs in electric welding, electrical power, pneumatics, technical control, management supervision, and equipment maintenance through the China-Zambia Vocational and Technical College, TEVETA Fund, and other channels. Internally, through mentorship programs, the company conducted business training in masonry, fitting, and other skills. The localization rate of company employees reached over 92%, local employees' skills were significantly improved, and technical expertise was exported to the DRC. Vision and Outlook (Staying True to Our Mission, Building a Shared Future Together) Innovation-driven development knows no bounds. Over the past decade, the company has upheld a sense of survival crisis and market competition awareness, adhered to innovation-driven development, and achieved high-quality growth. In 2021, the company's IT infrastructure was completed and successfully put into use, committed to building an automated, digitalized, and intelligent factory. In August 2023, the company's anode furnace pyrometallurgy refining system technical renovation project was completed and put into operation. In November 2024, the company's three-year action plan for technology-empowered safety and environmental protection was officially established, focusing on technology empowerment and fostering new quality productive forces, propelling the company's high-quality development to a new level. Through collaborative development, benchmarking against first-class standards, technological innovation, and increased production and efficiency, the company continues to advance toward its enterprise vision of "becoming an evergreen, world-class smelter." is scheduled to be held on October 13-14, 2026 in Lusaka, Zambia. Welcome to participate! Contact Person : Wu Tao: 18270916376 jennywu@smm.cn

[SMM Tin Morning Brief: The Most-Traded SHFE Tin Contract Fluctuated Upward in the Night Session, Spot Market Expected to See Sluggish Trading]

French independent power producer ('IPP') Voltalia has secured €100 million in financing through a shareholder loan to support its 'Spring' transformation plan and asset divestment program. Announced alongside its 2026 annual results, the non-dilutive, one-year repayable advance aims to reduce debt and restore financial flexibility. The funds will back a targeted asset disposal strategy expected to generate between €300 million and €350 million by the first half of 2027. The loan matures on March 31, 2027, carrying an interest rate of one-month Euribor plus 265 basis points. Voltalia currently has 3.6 GW of capacity in operation and under construction.

The Chinese gold market is a tale of two sectors. The jewelry sector is struggling due to high prices, while gold investment has been red-hot.

【SMM Steel】Southern Steel signed a heads of agreement to acquire Ann Joo Steel from Ann Joo Resources. The cash deal targets non-current assets valued at RM1.005bn. It includes Ann Joo Integrated Steel but excludes dormant property units. The acquisition aims to expand scale and improve efficiency via shared resources. Southern Steel seeks cost synergies by integrating similar upstream businesses. The deal requires shareholder approval.

[SMM News Flash] According to reports, Changyuan Donggu is planning to acquire 100% equity of Xiangyang Kanghao Electromechanical Engineering Co., Ltd., held by Hubei Xinyuan Power Technology Group Co., Ltd., through a combination of share issuance and pay in cash, while also raising supporting funds. Upon completion of this transaction, the company will directly hold 100% equity of the target company.

On March 19, Junda Shares (002865.SZ) stated on the investor interaction platform that current high silver prices were putting certain pressure on the cost of PV silver paste. The company was adopting a two-pronged strategy in response: first, smoothing raw material price fluctuations through refined supply chain management; second, continuously advancing the R&D and application of low-silver and silver-free technologies to reduce silver paste consumption per unit of solar cell and ease cost pressure.

On March 16, Sichuan Xingkong Sodium-ion Battery Co., Ltd. and BASF officially signed a strategic cooperation agreement in Dazhou, Sichuan. The two parties will engage in in-depth collaboration across three key dimensions: R&D of core materials for sodium-ion batteries, coordination of the industry chain, and international product development, injecting new momentum into the technological advancement and global expansion of the sodium-ion battery sector. This partnership will focus on joint R&D of cutting-edge sodium-ion battery technologies, covering the entire material chain, including ESS parts, battery pack modules, and battery cells. Key areas of emphasis include thermal management, structural design, electrochemical performance enhancement, and material system optimization. Additionally, the collaboration aims to jointly overcome critical technical bottlenecks such as bamboo charcoal anodes and Prussian blue cathodes, driving the iteration of next-generation sodium-ion battery technologies. Simultaneously, BASF will provide Xingkong Sodium-ion Battery with high-quality raw material supplies. The two parties will also work together to develop customized energy storage solutions and establish a shared after-sales service system, accelerating the industrialisation of R&D achievements.