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.

This week, the operating rate of China's leading downstream aluminum processing enterprises was 64.1%, down 0.3 percentage points WoW.

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.

According to reports, Kazakhstan has formally signed a tripartite cooperation memorandum with the US-based Open Element company and South Korea's Hands company, finalising the construction project of the country's first modern aluminum wheel manufacturing plant. This marks a critical step in the transformation of Kazakhstan's automotive parts industry toward high-end and localised production, and also serves as a significant milestone in deepening its international industrial cooperation and strengthening its industrial capabilities. The project is led by Kazakhstan's leading domestic automaker, Astana Motor Company, in collaboration with Open Element from the US and Hands from South Korea.

In October 2025, China's aluminum wheel exports reached 78,800 tons, showing a slight year-on-year increase of 2.59% but a month-on-month decline of 8.23%, reflecting an ongoing downward adjustment in overseas market demand.

[SMM Express] According to reports, the Shenlika Intelligent Automotive Wheel Hub Production Project (Phase II) is planned to occupy approximately 103.6 mu of land and is expected to construct four standard factory buildings along with supporting facilities, with a total floor area of about 81,600 m². The project aims to introduce a series of supporting equipment, including melting furnaces, casting machines, heat treatment equipment, machining, and coating facilities. Since construction officially began in mid-September, progress has been steadily advancing, and partial production is anticipated to commence by September next year.

Construction on the Shenlika Intelligent Automotive Wheel Production Project (Phase II) officially commenced in mid-September, with the goal of fully completing and commissioning the project by the end of 2028. Upon completion, it is expected to produce an additional 1 million high-quality, lightweight aluminum alloy automotive wheels annually. The Shenlika Intelligent Automotive Wheel Production Project, with a total planned land area of ​​over 260 mu (approximately 260 acres) and a total investment of 3 billion yuan, plans to construct an information-based, intelligent automotive wheel production line. Upon completion, it will be able to produce an additional 6 million high-quality, lightweight aluminum alloy automotive wheels annually. The Shenlika Intelligent Automotive Wheel Production Project (Phase II) has a total investment of approximately 1 billion yuan, covering a planned land area of ​​approximately 103.6 mu (approximately 260 acres). It plans to construct four standard factory buildings and supporting facilities. The project will include a series of supporting facilities, including melting furnaces, casting machines, heat treatment equipment, machining, and coating equipment, to create an information-based, intelligent automotive wheel production line.

Datong Hui and Tu Autonomous County, Xining City, is promoting the high-quality development of its aluminum industry, focusing on the development goals of "Qinghai Green Aluminum - Plateau Aluminum Valley". As of October 14th, the county had established an annual electrolytic aluminum production capacity of 900,000 tons, with 74% of the county utilizing green electricity. Its aluminum deep processing capacity reached 1.18 million tons, with an annual output value exceeding 30 billion yuan. The county has successfully established one of the nation's first core green aluminum production bases, the province's first specialized green aluminum industrial cluster, and the nation's first green aluminum wheel production base. These achievements are evident in the aluminum industry's transformation and upgrading towards high-end, intelligent, and green development. Leveraging regional green electricity resources, Datong County has certified two core green aluminum production enterprises and one model green aluminum production enterprise. Beichuan Industrial Park has been recognized as one of the first core green aluminum production bases, maintaining a nationally leading share of green electricity in the electrolytic aluminum industry. Datong County pioneered an electrolytic aluminum capacity upgrade and replacement project in Northwest China, reducing overall AC power consumption by approximately 600 kWh per ton of aluminum produced.

[SMM Analysis: Primary Aluminum Alloy Operating Rate Steadily Rose in September, Aluminum Alloy Wheel Hub Exports Hit a New High, Boosting Industry Confidence] SMM September 30, 2025: In September 2025, the operating rate of China's primary aluminum alloy industry showed a steady upward trend, while aluminum alloy wheel hub exports reached a new record high, injecting strong momentum into the industry's development. In terms of the operating rate performance, the preliminary operating rate for China's primary aluminum alloy industry in September was 57.7%, up 0.9% MoM and up 2.4% YoY...

[SMM Aluminum Downstream Analysis: Resilience Amid Divergence - A Comprehensive Analysis of Production and Stockpiling in the Aluminum Processing Industry During the 2025 National Day Holiday] The 2025 Mid-Autumn Festival and National Day holidays combined to form an 8-day long holiday. Through a survey of sample enterprises across the entire industry chain in the aluminum processing industry, SMM found that the industry exhibits both overall production resilience and sectoral divergence. This survey covered a total of 87 downstream aluminum processing enterprises, involving a total annual capacity of over 13.226 million mt. The data shows...