On August 10, 2026, the 150,000 mt rare earth aluminum alloy project of Quantum Digital New Materials Co., Ltd. under Hebei Shengzhuo Group was put into production. The project adopts two operating models: direct molten aluminum supply and aluminum ingot exports. Direct molten aluminum supply can save downstream clients 600 to 700 yuan per mt in costs and reduce comprehensive energy consumption by 30%-40%. The project uses cutting-edge processes such as a LIBS intelligent sorting system and a twin-chamber reverberatory furnace, achieving a metal burn-off rate of only 0.6% and a metal recovery rate from aluminum dross of over 95%. After harmless treatment, the aluminum dross is used as raw material for building materials, thereby achieving closed-loop "zero waste discharge" production. :

[Liquidity Tightening Concerns Ease Marginally, Aluminum Prices Stay Under Pressure at Highs in Near Term] Overall, on the macro front, US PPI and core PPI for July both declined YoY, coming in below both expectations and previous readings. Inflationary pressure eased further, and market expectations for a US Fed rate hike in September were scaled back, marginally easing concerns over liquidity tightening. On the fundamentals front, aluminum ingot inventories continued to destock, but destocking was expected to slow down in the second half of the month. The pace of production resumptions at Middle Eastern aluminum smelters was faster than the market had previously expected, and the supply-tightness premium priced in earlier faced pressure to unwind. Although macro recovery and continued destocking in the first half of August supported stronger aluminum prices, market sentiment shifted, and aluminum prices are expected to remain under pressure at high levels in the near term, with upside room likely to be capped to some extent by production resumption expectations.

SMM News, August 13: PV Aluminum Extrusion: This week, the operating rate of surveyed PV aluminum frame enterprises remained stable. Some leading PV frame enterprises reported that their current orders were ample and sufficient to keep production running at high levels until month-end. Downstream, PV module enterprises did not change their procurement strategies because of the recent drift higher in aluminum prices and continued to purchase as needed. According to SMM, frame enterprises had no plans to adjust processing fees in the short term. At the current stage, supply-side and demand-side fundamentals in the industry were relatively balanced, so the operating rate of PV aluminum frame enterprises would continue to run at a steady pace. Raw Material Prices: During the period (August 10-13, 2026), the weekly average SMM A00 aluminum ingot price was 24,145 yuan/mt, up 2.0% from the previous weekly average price. Overall, macro front, the YoY growth rates of US July CPI and core CPI slowed to 3.4% and 2.5%, respectively, both in line with market expectations. The mild pullback in inflation eased concerns about further aggressive rate hikes by the US Fed, weakened the short-term momentum for US Treasury yields to shoot up, and eased macro liquidity pressure. Combined with lingering differences over the Middle East situation, these factors provided staged support for aluminum prices. Fundamentals side, aluminum ingot inventory continued to destock, but destocking was expected to slow down in the second half of the month. Supply side outside China, the UAE's EGA disclosed progress on the resumption of production at the AlTaweelah aluminum smelter. Currently, 18% of the plant's 1,262 electrolysis cells have been restarted, and the pace of the production resumption was faster than the market had previously expected. The previously traded supply tightness premium faced give-back pressure. Although macro recovery and continued destocking supported higher aluminum prices in the first half of August, due to a shift in market sentiment, aluminum prices are expected to be under pressure at high levels in the short term, and upside room will be suppressed to some extent by production resumption expectations. Next week, the most-traded SHFE aluminum contract is expected to trade in the range of 23,600-24,450 yuan/mt; LME aluminum is expected to trade in the range of $3,180-3,330/mt. Going forward, close attention should be paid to the progress of production resumptions in the Middle East and developments in new project commissioning plans.

[SMM Aluminum Price Weekly Review: Mild Pullback in Inflation Eases Macro Anxiety, Production Resumptions Accelerate and Market Sentiment Turns]

SMM, August 13: In early trading, the SHFE aluminum 2608 contract moved lower from yesterday's center; market buying sentiment improved further, and trading among traders was relatively active. Today, SHFE aluminum spot premiums were mainly traded between parity against the August contract and August contract +10 yuan/mt, while market transactions against the September contract were at discounts of 30 yuan/mt to 20 yuan/mt. Today, the east China market shipment sentiment index was 3.18, up 0.01 day on day; the purchase sentiment index was 3.30, up 0.04 day on day. Aluminum futures pulled back somewhat; today, downstream processing enterprises in the central China market showed a slight recovery in purchase willingness, and overall market trading volume recovered. Large traders remained notably willing to hold prices firm and hold back from selling, and the price difference between large and small traders' quotes was wide. In the end, actual transaction prices in the central China market were in a range of discounts of 110-150 yuan/mt against the SHFE aluminum September contract. Today, the central China market shipment sentiment index was 3.06, down 0.03 day on day; the purchase sentiment index was 2.95, down 0.02 day on day. Inventory side, aluminum ingot inventories in major consuming regions rose by 3,000 mt day on day today, with only Gongyi showing destocking.

[CPI in Line with Expectations Eases Macro Anxiety; Sustained Destocking Provides Price Support] Based on a comprehensive assessment, on the macro front, US July CPI and core CPI YoY growth rates slowed to 3.4% and 2.5%, respectively, both in line with market expectations. The mild inflation pullback eased market concerns about further aggressive rate hikes by the US Fed; short-term upward momentum in US Treasury yields weakened, and macro liquidity pressure eased somewhat, providing support for aluminum prices at this stage. The fundamental supply gap persisted, and aluminum ingot inventories continued destocking. On the supply side outside China, UAE's EGA disclosed the progress of production resumption at the AlTaweelah aluminum smelter. Currently, 18% of the plant's 1,262 pots have been restarted, and the pace of production resumption has been faster than earlier market expectations. The supply-tightness premium priced in earlier now faces retracement pressure. In the near term, aluminum prices are expected to consolidate on a strong note, but upside room will be somewhat capped by production resumption expectations.

[SMM Analysis]Raw Material Constraints Combined with Weakening Marginal Demand Kept the Operating Rate of Secondary Aluminum Producers at a Low Level in July

[SMM Analysis: Raw Material Constraints Combined with Weakening Marginal Demand Keep July Secondary Aluminum Operating Rate Low ] According to the SMM survey, the operating rate of secondary aluminum producers in July 2026 rebounded slightly by 1.4 percentage points MoM from June to 34.6%, but fell 7.0 percentage points YoY.

SMM August 12: The SHFE aluminum 2608 contract continued to run at high levels in morning trading. Wuxi saw more warehouse withdrawals, relatively less inbound shipments due to weather issues, and relatively active trading among traders. Today, SHFE aluminum spot premiums mainly transacted in the range of 8-10 yuan/mt to SHFE 08 contract +10 yuan/mt. In east China today, the selling sentiment index was 3.17, up 0.02 DoD; the buying sentiment index was 3.26, up 0.06 DoD. Aluminum futures prices rose for multiple consecutive days, keeping buying sentiment in the central China market sluggish. Downstream processing enterprises, constrained by insufficient off-season orders and high in-factory inventory as well as elevated aluminum prices, kept buying sentiment at low levels with a further weakening trend. As aluminum prices rose and premiums eased somewhat, suppliers' willingness to sell recovered slightly. Actual transaction prices in the central China market eventually centered around a discount of 100-140 yuan/mt against the SHFE aluminum 08 contract. Today in central China, the selling sentiment index was 3.09, up 0.03 DoD; the buying sentiment index was 2.93, down 0.01 DoD. Inventory-wise, aluminum ingot inventory in major consumption areas dropped 13,500 mt WoW today, with destocking seen in Guangdong and Wuxi.

[Bullish Futures Pattern Continues, Short-Term Aluminum Prices to Hold Up Well] Based on comprehensive assessment, while the Middle East situation remains divergent and the US Fed, though not raising rates in July, still takes a hawkish overall stance, the fundamental deficit continues and aluminum ingot inventory draws down, so short-term aluminum prices are expected to consolidate on a strong note.