In May, China's aluminum fabrication industry recorded an overall PMI of 50.8%, barely staying above the 50 mark but pulling back significantly by 3.1 percentage points from April. Industry sentiment slid from the edge of expansion territory toward the critical threshold, with structural divergence intensifying further.

Aluminum Deutschland said Germany’s aluminum industry remained under pressure in Q1 2026, with recycled aluminum production falling 3% YoY to 684,564 tones and semi-finished aluminum output declining 1% YoY to 568,688 tones. Remelter production dropped 4%, while extruded products fell 4% amid weak demand from construction and automotive sectors. At the same time, 85% of companies reported aluminum scrap shortages, while 66% described order conditions as poor. Around 57% of companies do not expect business conditions to improve by the end of 2026. The industry also warned of risks linked to high energy costs, tight scrap supply and production relocation, with some companies already implementing layoffs, capacity cuts and overseas shifts.

[SMM Aluminum News Flash] SMM data showed that the secondary aluminum industry PMI registered 44.6% in May, pulling back 6.3 percentage points MoM and continuing to operate below the 50 mark. If the raw material shortage issue is not substantially alleviated, enterprises continue to face procurement difficulties, and demand further deepens into the off-season, the industry PMI in June is expected to remain under pressure below the 50 mark.

Rio Tinto plans to restart the idle Line 4 potline at the New Zealand Aluminum Smelter (NZAS) in Tiwai Point and has signed a letter of intent with Contact Energy for a power purchase agreement. If finalized, the potline could resume operations in 2030. The line has been idle since 2020 and is expected to add about 30,000 tones of aluminum production annually once fully operational. Rio Tinto said the restart could contribute around NZD 100 million (about USD 59 million) annually to the local economy while strengthening New Zealand’s aluminum industry and energy cooperation.

Recently, Guinea's Minister of Mines and Geology revealed that the country plans to build five alumina refineries before 2030. Currently, three alumina refinery projects by Chalco, SPIC, and the Winning Consortium are under construction, with a total capacity expected to reach 4.8 million mt. In addition, the Guinean government is in discussions with Alcoa (CBG) on an alumina refinery project and is making every effort to drive the country's transformation from a bauxite exporter to an alumina processing nation, in order to enhance its position in the global aluminum industry chain.

In April, China's magnesium exports fell 21.9% MoM to 39kt but rose 2.7% YoY. Jan-Apr exports totaled 162kt, up 9.6% YoY. Europe led ingot demand, Japan saw high compliance prices, and North America drove alloy growth. The overall outlook remains positive.

Walk the bauxite-alumina-aluminum value chain across Central Asia's five republics and the picture resolves quickly: one country runs the whole chain, one runs a piece of it, and three play no meaningful role at all. That picture, however, may be on the verge of a significant shift.

Norsk Hydro remains in focus after recent quarterly results highlighted its continued push into low-carbon and recycled aluminum. As one of the few fully integrated aluminum producers covering bauxite, alumina, primary aluminum, extrusion and recycling, Hydro is leveraging Norway’s hydropower resources to strengthen its low-carbon aluminum position. The company said recycled and low-emission aluminum products could become a major long-term earnings driver, while scrap collection and remelting operations continue expanding in Europe and the US. However, the aluminum industry still faces pressure from weak construction demand, oversupply concerns and volatile energy prices. Hydro believes renewable energy access, recycling and downstream processing will remain key competitive advantages.

Vietnamese industrial group THACO is accelerating plans to expand its bauxite and alumina business in Lam Dong Province with proposed investments worth about USD 4.4 billion. The Lam Dong 2 alumina project, valued at around USD 1.9 billion, is designed to produce 2 million tones of alumina annually, with the first 1 million-tone phase targeted for commissioning by 2030. THACO also plans a USD 2.5 billion bauxite mining project with annual ore extraction capacity of about 12 million tones. In addition, the company is studying downstream industrial parks covering aluminum smelting, titanium processing and chemical production. If approved, the projects could turn Lam Dong into one of Vietnam’s largest integrated aluminum industry hubs.

Overall, the aluminum processing industry achieved a slight edge up in operating rate this week, driven by the recovery of export orders, the surge in energy storage demand, and the recovery of infrastructure-related orders. The industry maintained relatively strong resilience, and going forward, attention should be focused on the sustainability of export orders and the boosting effect of aluminum price trends on demand.