[Aluminum Scrap and Secondary Aluminum Weekly Review: Inventory Buildup from Lower Costs and Off-Season, ADC12 Consolidates on a Subdued Note] China's aluminum scrap market prices this week followed the decline in primary aluminum, showing a pattern of weakness at high levels, but cost support still existed, limiting the downside. On August 20, SMM A00 spot aluminum closed at 23,600 yuan/mt, down 520 yuan/mt from 24,120 yuan/mt last Thursday. Dragged by the decline in primary aluminum prices, aluminum scrap prices...

Construction Materials Social Inventory: According to SMM survey, the total construction materials social inventory shifted from increase to decline this period. As of August 20, 2026, SMM construction materials social inventory stood at 5.5491 million mt, destocking by 206,600 mt WoW, down 3.59%. During the survey period, futures drifted higher, and market trading sentiment improved slightly compared to the earlier period, driving the overall inventory destocking. In addition, in some regions, high water levels in waterways hindered navigation, leaving most resources still stranded in transit, causing a significant drop in actual arrivals. The combined impact led to a faster pace of social inventory destocking this period. Going forward, attention should be paid to inventory pressure from concentrated arrivals after navigation resumes. Regional Social Inventory: Currently, inventory performance across regions continued to diverge. East China stood out in destocking, mainly due to the phased shipping suspensions in Huzhou, Jiaxing and other places, which caused a sharp drop in construction materials arrivals in Hangzhou, while demand remained largely at the prior level, resulting in a notable WoW destocking. In the Northwest region, due to continuous resource outflows from local steel mills, in-province deployment decreased, and inventory continued to destock. In Southwest China, Central China, and South China, sentiment recovered intermittently driven by futures, and downstream clients' willingness to purchase strengthened slightly, edging inventory down.

According to SMM statistics, total construction steel inventory this period was 8.3259 million mt, down 217,100 mt MoM (-2.54% MoM), shifting from increase to decline. Both mill inventory and social inventory destocked to varying degrees. Social inventory destocking accelerated notably as arrivals dropped. With the dock closure now lifted, subsequent concentrated arrivals of construction steel may lead to social inventory accumulation.

[SMM Silicon-based PV Morning Brief: Solar Cell Market Diverges, EVA Prices Move Sideways] The solar cell market showed divergence, with quotes for different sizes moving in different trends. For 210N cells sold to the Chinese market, earlier high prices lacked support from actual orders, so producers lowered their quotes, and prices pulled back slightly to 0.327-0.343 yuan/W. Quotes for 183 and 210R cells were largely stable, as producers stopped pushing up high prices. Affected by price adjustments by some enterprises, the high end of the price range narrowed, while the low end moved up simultaneously. Currently, the 210R price range is 0.327-0.356 yuan/W, and the 183 price range is 0.325-0.361 yuan/W. Overall, demand outside China supported 183 and 210R cells, while weak domestic procurement weighed on 210N. In the short term, the futures market diverged, and changes in actual order transactions need to be closely tracked.

India’s average daily maximum power demand increased by approximately 9.4% year on year during the first half of August 2026, while total electricity generation rose by around 7.6%. Renewable generation surged by approximately 39% to 17.3 TWh, but hydropower output fell by around 17% to 11 TWh, requiring coal-fired generation to increase by approximately 6% to 58.1 TWh. Higher coal-fired output accelerated the drawdown of power plant inventories. Coal stocks monitored by the Central Electricity Authority declined from 38.01 mnt on 31 July to 34.71 mnt on 16 August, a reduction of approximately 3.31 mnt, or nearly 9%. However, the number of plants with critical stocks increased only from 31 to 32, while daily coal receipts of around 2.42 mnt on 16 August marginally exceeded consumption of approximately 2.40 mnt. The situation therefore indicates localised logistical and inventory pressure rather than a nationwide coal shortage.

[Macro Expectations Repeatedly Disturb, Aluminum Prices Consolidate with Upside Encountering Resistance] Overall assessment: Short-term aluminum prices are expected to mainly consolidate, with upside room somewhat capped by expectations of production resumptions.

[SMM Silicon-based PV Morning Meeting Minutes] Silicon metal: Yesterday, SMM east China oxygen-blown #553 silicon was around 9,200-9,300 yuan/mt, and #441 silicon was around 9,300-9,500 yuan/mt. On the supply side, there have been many expectations regarding news from large plants in Xinjiang towards month-end, strengthening the bottom support for silicon metal prices. Silicon enterprises showed diverging attitudes in quoting prices and selling—some maintained firm quotes and sold according to market conditions, while others temporarily suspended quoting. Attention should be paid to changes in the operating rates of silicon enterprises on the supply side. Wafers: In the market, 18X wafer prices were 1.105-1.123 yuan/piece, 210RN wafer prices were 1.148-1.153 yuan/piece, and 210N wafer prices were 1.241-1.256 yuan/piece. Wafers of all sizes maintained an upward trend, with cell segment having accepted a quote of 1.15 yuan/piece for 210R, and 183 wafers may see further price increases due to tight supply.

As of August 18, the operating rate of 50 EAF steel mills nationwide mainly producing construction steel was 31.71%, down 1.96% WoW; the capacity utilization rate was 31.30%, down 2.17% WoW from the previous period; the daily average production of construction steel was 69,700 mt, down 4,800 mt WoW from the previous period.

SMM August 18 news: Dealers in the Zhejiang region reported that end-use consumption of e-bike lead-acid batteries was generally average. Recently, multiple brand manufacturers intensified sales promotions to stimulate dealer procurement, with the wholesale price of the mainstream 48V12Ah model at 270-290 yuan per set. Manufacturers in the Jiangxi region reported that replacement demand for e-bike lead-acid batteries showed relative improvement, orders for finished products improved somewhat, inventory pressure eased accordingly, and the current plant operating rate has risen to 85%; manufacturers in the Jiangsu region reported that overall market demand was generally average, dealers mainly relied on just-in-time procurement, factories arranged production according to order conditions, production line operating rates remained at 70-80%, and raw material lead was mostly procured through long-term contracts.

[SMM Silicon-Based PV Morning Meeting Minutes: Wafer Prices Up Nearly 30%, Solar Cell Prices Shot Up Across All Sizes] Wafer: Prices for all sizes rose significantly, with 18X up nearly 30%, and second- and third-tier enterprises generally following the increase. Production in August fell 1-2 GW MoM; top-tier players proactively implemented production cuts as prices fell below cash cost and inventory remained elevated, and the total volume and allocation of external toll processing were also adjusted. Solar cell: Prices across all sizes continued to shot up sharply, with mainstream transactions for 210R, 183, and 210N rising to 0.31-0.345, 0.31-0.35, and 0.31-0.336 yuan/W, respectively.