SMM August 20 News: Price Review: As of Thursday this week, the SMM alumina index stood at 2,681.62 yuan/mt, down 0.46 yuan/mt from last Thursday. In Shandong, the price was reported at 2,650-2,720 yuan/mt, down 10 yuan/mt WoW; in Henan, 2,690-2,750 yuan/mt, down 10 yuan/mt WoW; in Shanxi, 2,680-2,740 yuan/mt, down 10 yuan/mt WoW; in Guangxi, 2,580-2,640 yuan/mt, down 5 yuan/mt WoW; and in Guizhou, 2,720-2,790 yuan/mt, down 10 yuan/mt WoW. Markets Outside China: As of August 13, 2026, the FOB Western Australia alumina price was $360/mt, with an ocean freight rate of $32/mt, and the USD/CNY selling rate was around 6.74. This price was equivalent to approximately 3,066.17 yuan/mt at mainstream Chinese ports, which was 384.55 yuan/mt higher than the alumina index price. Seven spot alumina transactions were concluded outside China this week, with details as follows: (1) On August 20, 2026, an alumina transaction was concluded outside China at $363/mt FOB East Australia for 30,000 mt, or $364/mt FOB East Australia for 50,000 mt, seller's option, with October shipment. (2) On August 13, 2026, 30,000 mt of alumina was traded outside China at $374/mt CFR Malaysia, with August shipment. (3) On August 14, 2026, 30,000 mt of alumina was traded outside China at $362.5/mt FOB West Australia, with September shipment. (4) On August 14, 2026, 63,000 mt of alumina was traded outside China at $409/mt CIF Rotterdam. (5) On August 14, 2026, 30,000 mt of alumina was traded outside China at $400/mt FOB Jamaica, with September shipment. (6) On August 13, 2026, 30,000 mt of alumina was traded outside China at $360/mt FOB West Australia or $358/mt FOB East Australia, with October shipment. (7) On August 13, 2026, 30,000 mt of alumina was traded outside China at $374/mt CFR Malaysia, with August shipment. Chinese Market: According to SMM data, as of Thursday this week, China's total installed capacity of metallurgical-grade alumina was 118.42 million mt/year, with total operating capacity at 88.01 million mt/year. The national alumina weekly operating rate remained flat WoW at 74.33%. Specifically, the weekly operating rate for alumina in Shandong remained flat WoW at 89.14%; in Shanxi, flat at 64.9%; in Henan, flat at 56.53%; in Guangxi, flat at 78.05%; and in Guizhou, flat at 83.05%. Spot market side, two transactions were concluded this week. Xinjiang procured 5,000 mt of spot alumina at delivered prices of 2,960 yuan/mt each. Xinjiang procured 10,000 mt of spot alumina at delivered prices of 2,985 yuan/mt each. Spot alumina prices fell steadily this week, with the oversupply situation continuing to weigh on China prices. Markets outside China showed a different trend, with alumina prices rising steadily, mainly due to two reasons: first, transportation issues in the Middle East increased demand for bagged alumina, leading to a premium and sustained rise in prices outside China; second, bauxite supply in Indonesia was generally tight, limiting local alumina production and pushing spot prices outside China higher. Domestically, operating capacity for alumina remained stable this week, with weekly production at 1.688 million mt. Inventory performance showed divergence: raw material inventories at aluminum smelters decreased by 9,000 mt to 3.399 million mt, with current consumption primarily from in-factory inventory and long-term contract procurement pace maintained, overall changes relatively small; finished product inventories at alumina refineries decreased by 3,000 mt to 1.217 million mt, with enterprises maintaining normal long-term contract shipments and limited fluctuations; port inventories decreased by 35,000 mt to 1.016 million mt, mainly due to a decline in pickup volume; warrant inventories increased by 15,000 mt to 288,000 mt, and in-transit inventories edged up by 2,000 mt to 1.325 million mt. Overall, total alumina inventories in China decreased by 30,000 mt to 7.245 million mt. Looking ahead to next week, an alumina enterprise in Guangxi will resume production after maintenance ends, with capacity expected to recover, and overall supply is expected to increase, keeping the market under pressure. On imports and exports, July net imports were 63,000 mt, and net imports are expected to decrease going forward, with port inventories likely to decline during the period. Overall, inventory levels are expected to fluctuate within the current range, and spot prices are expected to remain in the doldrums. [Data other than public information are based on public information, market communication, and the SMM internal database model, processed by SMM for reference only and do not constitute decision-making advice.]

SMM August 20 News: Domestic Bauxite: Domestic Ore Supply Disruptions Continue, Mainstream Prices Remain Stable Affected by the Shanxi coking coal incident, mining at major domestic bauxite production areas such as Shanxi and Henan has experienced some disruptions in the short term, leading to phased changes in ore supply. Meanwhile, alumina prices remain at a relatively high level, and alumina refineries have moderate tolerance for raw material price increases, mostly passively accepting current ore prices for now. As of today, transaction prices for bauxite with an Al/Si ratio of 5 and 60% alumina content in Shanxi are around 530-550 yuan/mt EXW at crushing plants excluding VAT; in Henan, prices for similar specifications are around 500-540 yuan/mt EXW; in Guiyang, prices for bauxite with an Al/Si ratio of 6 and 60% alumina content are 490-540 yuan/mt EXW price including VAT; in Guangxi, prices for bauxite with an Al/Si ratio of 6 and 53% alumina content are 320-335 yuan/mt EXW at crushing plants excluding VAT. Imported Bauxite: Bauxite Price Hikes Fell Short of Early-Month Expectations, Upstream Import Ore Quotes Slightly Down Data as of August 14 showed that total weekly port departures of bauxite from major ports in Guinea were 4.6891 million mt, up 12,800 mt from the previous week, with shipments basically stable. Due to renewed tensions in the US-Iran situation, oil prices rebounded again, and ocean freight rates from Guinea to China followed with an upward trend. Market quotes rose to around 37-38 $/dmt, and mine costs continued to increase to varying degrees. Combined with policy uncertainties in Guinea and weather-related transport disruptions, Guinean mines tightened control over bauxite shipments. For Australia, as of August 14, weekly port departures from major Australian ports totaled 1.1008 million mt, up 174,000 mt from the previous week, with shipments basically flat. Going forward, attention should be paid to the pace of shipments from Australian mines and changes in port shipments. As of August 14, China's bauxite port arrivals totaled 4.8239 million mt, down 402,800 mt from the previous week. Continued attention is needed on the impact of oil price and ocean freight rate fluctuations on future arrival pace and landed costs. Price-wise, Guinea's August long-term contract quotes for bauxite were in the range of 73-74 $/mt, but downstream price acceptance was relatively limited. Meanwhile, bauxite inventories at China's alumina refineries remain at a high level. This week, alumina refinery bauxite inventories were relatively stable, with days of inventories around 96 days, putting some upward pressure on ore prices. For Guinean bauxite, transportation costs from Guinea to China rebounded, mine costs increased, and the traditional rainy season along with adverse weather caused shipment reductions. As a result, upstream and trader quotations did not meet early-month expectations, slightly declining to a high price range of $72-73/mt. Under the dual impact of persistently high inventory and shrinking profits, China's alumina refineries maintained their intended transaction prices in the $70-71/mt range. The divergence between upstream and downstream in the bauxite market remained significant, with transaction activity slowing down, and the stalemate continuing since last week. As of Thursday this week, the FOB quotation for Guinean bauxite was $36-44/mt, flat WoW; the CIF price was $70-73/mt, down $0.5/mt WoW; and the SMM imported bauxite index price stood at $71.99/mt, up $0.27/mt WoW. Moving forward, bauxite prices will still depend on mine costs, the impact of Guinea's traditional rainy season and the government's bauxite export quota policy on overall shipments. SMM will continue to closely monitor the bauxite market trends and transaction conditions. Overall, domestic ore prices remained at current levels. Meanwhile, China's alumina refineries' inventories remained high (about 96 days), and the price negotiation between buyers and sellers persisted. The uncertainty of Guinea's quota policy, shipment decreases, and the traditional rainy season also brought certain upward pressure on bauxite costs. In the short term, due to the dual impact of costs and policies leading to reduced shipments, imported ore prices are expected to remain in a high-level stalemate. Subsequently, close attention should be paid to the implementation of Guinea's quota policy and ocean freight rate trends.

I. Coal to Hydrogen Shandong anthracite transaction price range [1990-1990], average hydrogen cost was [1.9 yuan/m³] Hebei anthracite transaction price range [1740-1740], average hydrogen cost was [1.73 yuan/m³] Shanxi anthracite transaction price range [1260-1260], average hydrogen cost was [1.32 yuan/m³] Henan anthracite transaction price range [1290-1290], average hydrogen cost was [1.42 yuan/m³] II. Natural Gas to Hydrogen eastern Guangdong natural gas transaction price range [5850-5870], average hydrogen cost was [2.7 yuan/m³] Guangxi natural gas transaction price range [5540-6070], average hydrogen cost was [2.67 yuan/m³] Shanxi natural gas transaction price range [5580-5760], average hydrogen cost was [2.62 yuan/m³] Hebei natural gas transaction price range [5692-6020], average hydrogen cost was [2.72 yuan/m³] Shandong natural gas transaction price range [5815-5940], average hydrogen cost was [2.74 yuan/m³] Pearl River Delta natural gas transaction price range [5860-5870], average hydrogen cost was [2.74 yuan/m³] Hubei natural gas transaction price range [5810-6020], average hydrogen cost was [2.75 yuan/m³] Henan natural gas transaction price range [5680-5930], average hydrogen cost was [2.72 yuan/m³] Guizhou natural gas transaction price range [5650-5930], average hydrogen cost was [2.69 yuan/m³] Sichuan natural gas transaction price range [5330-5850], average hydrogen cost was [2.67 yuan/m³] Zhejiang natural gas transaction price range [6030-6420], average hydrogen cost was [2.86 yuan/m³] Inner Mongolia natural gas transaction price range [5580-5820], average hydrogen cost was [2.6 yuan/m³] Heilongjiang natural gas transaction price range [5690-6020], average hydrogen cost was [2.71 yuan/m³] III. Propane to Hydrogen Northeast China propane transaction price range [5660-5750], average hydrogen cost was [3.3 yuan/m³] East China propane transaction price range [5790-6080], average hydrogen cost was [3.42 yuan/m³] Shandong propane transaction price range [5972-5982], average hydrogen cost was [3.45 yuan/m³] South China propane transaction price range [5890-6150], average hydrogen cost was [3.46 yuan/m³] IV. Methanol to Hydrogen Northeast China methanol transaction price range [2830-2850], average hydrogen cost was [2.48 yuan/m³] East China methanol transaction price range [2730-2950], average hydrogen cost was [2.48 yuan/m³] Central China methanol transaction price range [2760-2980], average hydrogen cost was [2.53 yuan/m³] North China methanol transaction price range [2660-2780], average hydrogen cost was [2.37 yuan/m³] South China methanol transaction price range [2930-2940], average hydrogen cost was [2.53 yuan/m³] Northwest China methanol transaction price range [1890-2610], average hydrogen cost was [2.05 yuan/m³] Southwest China methanol transaction price range [2600-2850], average hydrogen cost was [2.44 yuan/m³]

The Publicity Department of the CPC Shanxi Provincial Committee and the Information Office of the People’s Government of Shanxi Province held the third press conference of the series themed “Starting the 15th Five-Year Plan on a Solid Footing,” briefing on Yangquan City’s economic and social development plan and key arrangements for the 15th Five-Year Plan period. Centering on energy transition, Yangquan will keep a firm hold on the basic foundation of stable production and supply, promote the transformation of coal from fuel to high-value-added materials, coordinate the integrated layout of wind, solar, thermal power, and energy storage, and build a national-level zero-carbon industrial park to high standards. By the end of the 15th Five-Year Plan period, the city’s installed renewable energy capacity is expected to reach 4.8 million kW, and its energy storage capacity will exceed 2 million kW. At the same time, it will focus on industrial upgrading, with an emphasis on cultivating three ten-billion-yuan-level industrial clusters: aluminum deep processing, calcium-based materials, and new-type battery materials. Among them, the output value of the aluminum deep processing industry is projected to surpass 30 billion yuan by 2030, while calcium-based materials will reach 15 billion yuan, and new-type battery materials will reach 15 billion yuan.

With the official approval of the Shanxi Provincial Department of Science and Technology, the New Energy Metal Materials Shanxi Laboratory was jointly established by Chalco Shanxi New Material Co., Ltd., as one of the co-establishing units, together with key universities and magnesium industry leaders, aiming to accelerate the transformation of Shanxi's aluminum-magnesium industry into the high-end track of new energy. As the highest-level innovation platform in the province, the laboratory focuses closely on the demands for lightweight development in NEVs and energy storage, laying out four core research directions: low-carbon smelting, high-performance alloys, precision forming, and solid waste recycling, and striving to build an entire aluminum-magnesium R&D chain system. Leveraging the most comprehensive resource advantages of the province's entire aluminum industry chain, Chalco Shanxi New Material will fully unleash its industrial strengths in pilot-scale production and mass manufacturing. Joining hands with partner universities and industry leaders, it will concentrate on tackling "bottleneck" technologies in battery substrate materials, lightweight alloys and other fields, drastically shortening the cycle for translating research outcomes into practical applications, and promoting the integrated development of basic research, technological breakthroughs, and industrial implementation.

[SMM Coking Coal and Coke Daily Brief] Coking Coal Market: Lin Fen low-sulphur coking coal was quoted at 2,070 yuan/mt. Coking coal side, some coal mines in Shanxi gradually resumed production, but overall safety supervision remained strict, mine production release was constrained, coking coal supply remained tight, some low-inventory coke plants began moderate restocking, shipments remained good after coal mines raised prices, online auction lots maintained a low failed-auction rate, the structural shortage of high-quality backbone resources remained unchanged, and the short-term coking coal market may consolidate on a strong note. Coke Market: The nationwide average price of quasi-first-grade metallurgical coke - dry quenching was 1,925 yuan/mt. Supply side, coking costs continued to increase, coke plant losses widened, and the production enthusiasm of some coke plants was dampened. Coupled with practical issues such as the structural shortage of coking coal, the scope of production cuts among coke plants continued to expand. Demand side, downstream steel mill profit margins remained under pressure, and some steel mills were cautious about purchasing, but most blast furnaces that had undergone maintenance earlier were preparing to resume production, driving an increase in hot metal production and providing a floor for coke demand. Overall, coking costs remained firm, coke fundamentals showed reduced supply and increased demand, imbalances continued to ease, and the short-term coking coal market may consolidate on a strong note.[SMM Steel]

It was recently learned from the Hejin Municipal Bureau of Industry, Information Technology and Science that the Shanxi Provincial Department of Science and Technology has officially approved the establishment of the Shanxi Provincial Laboratory for New Energy Metal Materials, a joint project between Chalco Shanxi New Materials Co., Ltd., three key universities, and two leading magnesium enterprises. This collaboration aims to accelerate the transformation of Shanxi's aluminum and magnesium industry towards the high-end new energy sector. The Shanxi Provincial Laboratory for New Energy Metal Materials is the highest-level innovation platform in the province, focusing on the development needs of new energy vehicles and lightweight energy storage. It will focus on four core research directions: low-carbon smelting, high-performance alloys, precision forming, and solid waste recycling, addressing industry technical pain points and building a complete aluminum-magnesium R&D system. Leveraging the province's most complete aluminum industry chain resources, Chalco Shanxi New Materials will fully utilize its pilot-scale production advantages, collaborating with universities and leading enterprises to focus on tackling "bottleneck" technologies in areas such as battery substrates and lightweight alloys. This will significantly shorten the research and development cycle and achieve integrated development of basic research, technological breakthroughs, and industrial application.

[SMM Daily Brief Commentary on Coking Coal and Coke] Coking coal market: Low-sulphur coking coal in Linfen was quoted at 2,070 yuan/mt. Coking coal side, an accident occurred at a coal mine in Lianyuan, Hunan, and production resumptions at coal mines in Shanxi remain constrained by safety supervision. The structural tightness of key coal types persists. Some high-quality coal types that previously saw deep pullbacks have expectations of price increases. In the short term, the coking coal market may consolidate on a strong note. Coke market: The nationwide average price of quasi-first-grade metallurgical coke (CDQ) was 1,925 yuan/mt. In terms of supply, coking coal prices remained firm, and most coke producers were suffering severe losses. Some coke producers proactively stepped up production restrictions, leading to a contraction in coke supply. Demand side, maintenance at blast furnaces at some downstream steel mills is expected to end soon, and daily average hot metal production shows an upward trend, so rigid demand for coke may increase. Some steel mills have begun to accelerate their procurement pace. Overall, market sentiment has been boosted, and some coke producers are holding back from selling in anticipation of price increases. In the short term, the coke market may consolidate on a strong note, and the first round of coke price increases may be implemented. [SMM Steel]

[SMM Coking Coal and Coke Daily Review] Coking coal market: The price of Linfen low-sulphur coking coal was quoted at 2,010 yuan/mt. For coking coal, progress in production resumptions at coal mines was constrained by safety supervision, the release of coking coal supply was limited, and overall coal mine shipments improved. Inventories continued their downward trend, the online auction market heated up further, the auction failure rate fell to recent lows, and some coal types still have upside room in the short term. Coke market: The nationwide average price of dry-quenched quasi-first-grade metallurgical coke was 1,925 yuan/mt. On the news front, the Shanxi Coking Association unanimously resolved that, from 00:00 on August 20, mainstream wet-quenched coke in Shanxi would be raised by 50 yuan/mt, and dry-quenched coke by 55 yuan/mt. Supply side, most coke producers fell into losses and their production enthusiasm was dampened. These producers proactively adopted production restriction measures, causing overall coke supply to decline. Demand side, expectations of blast furnace production resumptions at some downstream steel mills strengthened, and there were expectations of a recovery in hot metal production, providing support for coke prices. However, steel end-user transactions were mediocre, and steel mills' own margins were poor. Some steel mills remained cautious and were resistant to high-priced coke. Overall, under the combined effect of stronger cost support, supply contraction, and demand recovery, coke prices stopped falling, and the coke market may consolidate on a strong note next week.[SMM Steel]

China Sulphuric Acid Market Continued to Hit Bottom, Weak Demand Dragged Down the Price Center [SMM Sulphuric Acid Weekly Review]