According to SMM, as of February 27, 2026, the days of inventories for domestic aluminum rod plants were recorded at 12.7 days, an increase of 8.6 days from before the holiday.In the first week after the holiday, the weekly operating rate of the domestic aluminum wire and cable industry rebounded to 57%, up 4 percentage points MoM, significantly higher than the pre-holiday low of 53%.

According to SMM's latest monthly data survey, the total production of aluminum rods nationwide in May 2025 was 417,000 mt, an increase of 10,500 mt from April. After adjusting for the number of days in the month, the operating rate of aluminum rod plants in May was recorded at 62.15%, down 1.01% MoM and up 5.95% YoY. In the first half of May, due to the in the doldrums of aluminum prices and sufficient profit margins from orders on hand in the downstream sector, the market's purchasing efforts did not significantly weaken. Coupled with the industry still being in a concentrated shipping cycle, the supply side was able to maintain fluctuations at highs. However, in the second half of May, LME aluminum prices held up well due to the scarcity of aluminum ingots circulating in the market, while there was a noticeable weakening trend in industry deliveries. Consequently, market conditions took a sharp turn for the worse, and processing fees pulled back rapidly.

[SMM Analysis: The Center of Processing Fees Has Risen Since April, While the Supply Side of Aluminum Billets Remains Stable] Calm seas! Since April, the domestic supply of primary aluminum billets has remained stable. Despite the tariff war initiated by the US since early April, which once caused a "storm" in the domestic aluminum market, with the most-traded SHFE aluminum contract briefly touching the 19,000 yuan level. However, as a blessing in disguise, the aluminum prices, which were significantly dragged down by the macro front, allowed the aluminum billet processing fees to rise sharply. In May, as aluminum prices slowly recovered above the 20,000 yuan level, although the processing fees came under some pressure, due to...

[SMM Analysis: The Center of Processing Fees Has Risen Since April, While the Supply Side of Aluminum Billets Remains Stable] Calm before the storm! Since April, the domestic supply of primary aluminum billets has remained stable. Despite the tariff war initiated by the US since early April, which once caused a "panic" in the domestic aluminum market, with the most-traded SHFE aluminum contract briefly touching the 19,000 yuan level. However, as a silver lining, the aluminum prices, which were significantly dragged down by the macro front, allowed the processing fees of aluminum billets to rise sharply. In May, as aluminum prices slowly recovered to above 20,000 yuan, although the processing fees came under some pressure, due to...

SMM May 19 News: Yunnan Aluminum Co., Ltd. recently released its Q1 2025 performance report. According to the announcement, the company achieved a total revenue of 14.411 billion yuan in Q1, up 26.89% YoY. The net profit attributable to shareholders of the publicly listed firm was 974 million yuan, down 16.26% YoY. Regarding the reasons for the company's revenue growth, Yunnan Aluminum stated that it was mainly due to the increase in sales volume and selling prices of aluminum commodities during the reporting period. Meanwhile, the operating costs increased by 33.38% YoY due to the rise in raw material prices and sales volume of aluminum commodities during the reporting period. From the perspective of futures prices, the main SHFE aluminum contract generally fluctuated upward in Q1. As of the close on March 31, 2025, the main SHFE aluminum contract closed at 20,480 yuan/mt, with a quarterly increase of 3.49%. In terms of spot prices, according to SMM spot quotes, the SMMA00 aluminum spot quotes also generally showed an upward trend in Q1. As of March 31, the average spot price of SMMA00 aluminum was reported at 20,560 yuan/mt, up 790 yuan/mt from 19,770 yuan/mt at the end of 2024, representing an increase of approximately 4%. 》Click to view SMM aluminum product spot quotes In late January, coinciding with the Chinese New Year holiday, the unexpected destocking of aluminum ingot inventory in the first two weeks drove aluminum prices to continue to climb, reaching a high of 20,550 yuan/mt during the session on January 20, a new high since December 2024. However, as downstream enterprises took holidays near the end of the year, weakening consumption exerted downward pressure on aluminum prices, which fluctuated downward under pressure. Nevertheless, aluminum prices generally showed an upward trend in January. In February, coinciding with the Chinese New Year holiday, aluminum ingot inventory buildup was slightly higher than the same period in history. However, as downstream enterprises gradually resumed production after the holiday, aluminum prices maintained highs in February despite being in the off-season. By March, the aluminum market entered the traditional peak consumption season, with downstream demand gradually recovering. Coupled with the installation rush stimulated by the new PV policies in the past 1-2 months, aluminum consumption increased, and social inventory showed a destocking trend. Meanwhile, downstream demand also continued to rebound, driving aluminum prices to hold up well in early March. However, in late March, due to poor macro sentiment overseas, funds exited for risk aversion, leading to a decline in the futures market. Nevertheless, from a quarterly perspective, aluminum prices still performed well in Q1. Turning to the current aluminum prices, according to SMM, the recent aluminum market has received support from improved macro environments both domestically and overseas, but bullish and bearish factors are intertwined. On the supply side, domestic aluminum capacity is approaching the ceiling, and the insufficient recovery of hydropower in Yunnan has exacerbated regional supply tightness, limiting the increase in aluminum ingot output. On the cost side, a sudden notice of production suspension was issued for mining areas in Guinea where mining licenses were revoked late last Friday, sparking market concerns about the supply of bauxite raw materials, which may push up alumina costs. However, the specific impact remains to be evaluated. The demand side is under dual pressures from domestic seasonal weakness and trade uncertainties, making significant growth in the short term unlikely. Inventories of aluminum ingots have fallen to a low level compared to the same period last year, and tight spot liquidity is supporting aluminum prices. Overall, favorable macro conditions provide a floor for aluminum prices, and low inventories further strengthen price resilience. However, off-season pressure on the demand side limits upside room. In the short term, attention should be paid to the performance of domestic and overseas demand, as well as the supply situation of bauxite. As of May 19, the spot quote for SMM A00 aluminum remained at 20,220-20,240 yuan/mt, with an average price of 20,230 yuan/mt. Yunnan Aluminum has also been striving to improve the self-sufficiency rate of bauxite. Previously, the company stated that it is enhancing the self-sufficiency rate through the following methods: First, based on current exploration results, bauxite in Yunnan Province is mainly concentrated in areas such as Wenshan and Zhaotong, and the company will increase its efforts in bauxite development in Yunnan Province. Second, focusing on countries in Southeast Asia such as Laos, Indonesia, Vietnam, and Cambodia, the company will accelerate the acquisition of exploration rights for bauxite resources in surrounding areas and resource exploration. Third, the company will expedite the processing of existing exploration-to-mining permits, ensure resource continuity, and safeguard the amount of ore available for mining. Public information shows that during the reporting period, Yunnan Aluminum was mainly engaged in the mining of bauxite, production and sales of alumina, green aluminum, aluminum processing, and carbon materials for aluminum production. Its main products include alumina, prebaked anodes for aluminum production, graphitised cathodes, aluminum ingots for remelting, refined aluminum ingots for remelting, round and flat casting ingots of wrought aluminum and aluminum alloys, cast aluminum alloy ingots, round aluminum rods for electrical purposes, aluminum and aluminum alloy welding materials, etc. Meanwhile, the company actively expands its circular economy businesses, including comprehensive utilization of secondary aluminum, solid waste resources from aluminum production, and aluminum ash. It is worth mentioning that according to the company's 2024 performance report, the company achieved a total revenue of 54.45 billion yuan in 2024, up 27.61% YoY, hitting a record high since its listing. The net profit attributable to shareholders of the publicly listed firm was 4.412 billion yuan, up 11.52% YoY. The company mentioned in its annual report data that it currently has a production capacity of 1.4 million mt of alumina, 3.05 million mt of green aluminum, 1.6 million mt of aluminum alloys and aluminum processing products, and 820,000 mt of carbon products. Throughout 2024, the company actively sought to increase its electricity load, seized opportunities, and achieved rapid production resumptions in aluminum production. It promoted standardized production to enhance operational quality, achieving full coverage of standardized processes across the production lines of aluminum, alumina, and carbon products. The company achieved increased production and efficiency for its main products, producing 1.4088 million mt of alumina, 2.9383 million mt of primary aluminum, up 22.45% YoY, 805,800 mt of carbon products, up 2.85% YoY, and 1.2541 million mt of aluminum alloys and aluminum processing products, up 1.75% YoY. Yunnan Aluminum Co., Ltd. was also asked about the impact of new technologies on the future of the aluminum industry. In response, Yunnan Aluminum Co., Ltd. stated that in recent years, the aluminum smelting technology has developed rapidly, with significant breakthroughs in carbon-free anodes, inert anodes, high-end alloy rail transit, high-purity aluminum, 3C electronics, circular economy, and other areas. The impact on the future of the aluminum industry is mainly reflected in energy conservation and carbon reduction, energy efficiency improvement, cost reduction, industrial upgrading promotion, and green development facilitation. When mentioning the highlights of the company's future performance improvement, Yunnan Aluminum Co., Ltd. indicated that in the future, the company will continue to leverage its comprehensive competitive advantages in the green and low-carbon entire industry chain, continuously optimize the value chain of the green aluminum industry, and further enhance the brand influence and market value of "Green Aluminum • At Yunnan Aluminum". It will strive to build a "benchmark for first-class green aluminum enterprises", reward investors with sound operating performance, and gradually increase the dividend payout ratio as the company's operating performance improves.

In May, China's domestic aluminum ingot inventory successfully surpassed the 600,000 mt mark, demonstrating strong resilience in domestic aluminum consumption during the critical transition phase between the off-season and peak season, providing crucial support for the recent consecutive upward trend in aluminum prices. According to SMM statistics, as of May 15, the inventory of aluminum ingots at major domestic consumption hubs stood at 581,000 mt, a decrease of 20,000 mt from Monday this week, down 39,000 mt WoW from Thursday last week, and 166,000 mt YoY, remaining at a low level compared to the same period in the past three years. However, it is noteworthy that aluminum prices have rebounded and risen consecutively in mid-May, with aluminum prices breaking through the 20,000 yuan per mt threshold, which has somewhat suppressed downstream restocking demand. There have been noticeable signs of a decline in domestic outflows from warehouses over the past week, potentially gradually returning to off-season levels. SMM forecasts that...

In May, China's domestic aluminum ingot inventory successfully surpassed the 600,000 mt mark, demonstrating that domestic aluminum consumption remains resilient during the critical transition phase between the off-season and peak season, providing significant support for the recent consecutive upward trend in aluminum prices. According to SMM statistics, as of May 15, the inventory of aluminum ingots at major domestic consumption hubs stood at 581,000 mt, a decrease of 20,000 mt from Monday this week, a decrease of 39,000 mt WoW from Thursday last week, and a decrease of 166,000 mt YoY, still remaining at a low level compared to the same period in the past three years. However, it is noteworthy that aluminum prices have rebounded and risen consecutively in mid-May, with aluminum prices surpassing the 20,000 yuan per mt threshold exerting a certain inhibitory effect on downstream restocking demand. There have been noticeable signs of a decline in domestic outflows from warehouses over the past week, which may gradually return to off-season levels. SMM forecasts that...

According to SMM's latest monthly data survey, the total production of aluminum rods nationwide in April 2025 was 406,500 mt, an increase of 41,500 mt compared to March's production. After adjusting for the number of days in the month, the operating rate of aluminum rod plants in April reached 63.16%, up 6.77% MoM and 5.06% YoY. The main reasons were that downstream aluminum wire and cable industries entered the delivery cycle, with rigid demand releasing and in-plant inventory basically cleared. The advance production scheduling of orders significantly drove the improvement in operating rates. Meanwhile, as the center of aluminum prices pulled back, the market's buying sentiment was more optimistic compared to the same period last year, driving the improvement in operating rates on the supply side of aluminum rods.

Details of the hot topics in the aluminum market in April are as follows......

On April 16, at the AICE 2025 SMM (20th) Aluminum Industry Conference & Aluminum Industry Expo - Main Forum , hosted by SMM Information & Technology Co., Ltd. (SMM), SMM Metal Exchange Center, and Shandong Aisi Information Technology Co., Ltd., and co-organized by Zhongyifeng Jinyi (Suzhou) Technology Co., Ltd. and Lezhi County Qianrun Investment Promotion Service Co., Ltd., Luo Yu, member of the Standing Committee of the CPC Lezhi County People's Government Committee and Deputy County Magistrate, shared the planning and development of Lezhi County's aluminum industry. Where is Lezhi? The First Stop East of Chengdu · The Golden Section Point of Chengdu-Chongqing ► County Overview Lezhi County is located in the central part of the Chengdu-Chongqing region and is the hometown of Marshal Chen Yi, a founding father of the People's Republic of China. ►Location: Gateway to Chengdu's Eastward Expansion, Hub Connecting Chengdu and Chongqing In terms of location, Lezhi's relationship with Chengdu and Chongqing is similar to Kunshan's with Shanghai and Suzhou, or Dongguan's with Guangdong and Shenzhen. ► Position: Driving High-Quality Integrated Development in the Central Chengdu-Chongqing Region ►Position: A Place Where Multiple National and Provincial Strategies Overlap Lezhi is located at the golden section point of the straight-line distance between Chengdu and Chongqing, and is at the intersection of the Chengdu-Chongqing Twin-City Economic Circle, the Chengdu Metropolitan Area, and the Chengdu Plain Economic Zone, known as the "three-circle overlap." ►Transportation Advantages: A Three-Dimensional Transportation Network Integrating Highways, Railways, and Air Travel Highways: Railways: Lezhi is the only county-level city in China where two high-speed railways with a designed speed of 350 km/h intersect and share a station in a crossover configuration. Aviation: Distances from Lezhi County to nearby airports: 50 km to Tianfu International Airport, 105 km to Shuangliu International Airport, 169 km to Jiangbei International Airport, and 138 km to the newly planned Bishan International Airport. It is at an important node of the main corridor connecting the international airports of Chengdu and Chongqing, offering convenient direct flights nationwide and global connectivity. ►Surrounding Industrial Landscape What does Lezhi do? Concentrating the county's efforts on developing the aluminum-based materials industry ►Focusing on the Development of the Aluminum-Based Materials Industry The overall scale of the domestic aluminum semis market is expanding, with sustained growth in market demand. From a national perspective: In 2024, China's aluminum semis production reached 67.831 million mt, showing continuous growth over the past five years. From a provincial perspective: In 2024, Sichuan Province's aluminum semis production reached 2.5105 million mt, up 20.5% YoY, ranking 9th nationwide. From a demand perspective: The proportion of industrial aluminum extrusion continues to rise, with production reaching 11.49 million mt in 2024, accounting for approximately 44%. The Sichuan and Chongqing region is a key aluminum production area and aluminum processing production site in China. The processed products mainly include aluminum extrusions, aluminum plate/sheet and strip, aluminum rods and wires, and aluminum castings. Benefiting from a relatively complete industrial system, the region also boasts strong end-use consumption capacity for aluminum. However, compared to the capacity and production of aluminum processing, the capacity and production of aluminum in the Sichuan and Chongqing region are insufficient. Taking 2023 as a reference, the region's aluminum processing production was approximately 4.09 million mt, accounting for 8.7% of the national total, while the total aluminum production was only about 1.5 million mt, accounting for 3.53% of the domestic total, making it a net aluminum-importing region. In February 2023, Sichuan and Chongqing jointly formulated and issued the "Work Plan for the Collaborative Development of the Sichuan-Chongqing Aluminum Industry Chain." The plan proposes that by 2025, the output value of the Sichuan-Chongqing aluminum industry should reach 400 billion yuan, a group of leading enterprises and specialized and innovative enterprises should be cultivated, and a top-tier high-end aluminum material manufacturing base in the country should be established, aiming to create the strongest high-end aluminum material manufacturing base nationwide. The two regions will jointly promote the supporting of the industry chain, facilitate green and low-carbon development, build an industrial service system, and collaborate in seven aspects to form an "internal circulation" of aluminum industry enterprises in Sichuan and Chongqing, promoting the coordinated and rapid development of the aluminum industry in the region. In terms of market demand, the Sichuan and Chongqing regions regard the development of the aluminum industry as an important support for building two trillion-yuan industrial clusters in electronic information and automotive industries. ♦Automotive Industry •In recent years, 45 well-known automobile manufacturers, including FAW, Toyota, Changan, Great Wall Motors, Seres, Hyundai, and Lifan, have established operations in Sichuan and Chongqing. •In 2024, the annual automobile production in Sichuan and Chongqing reached 3.43 million units, up 4.1% YoY, accounting for 10.9% of the national total, with an output value exceeding 600 billion yuan. •The automobile ownership in Chengdu and Chongqing both exceeded 6 million units, ranking first and third in the country, respectively. This indicates a robust demand for lightweight aluminum extrusions and other parts in the automotive industry in Sichuan and Chongqing. ♦3C Electronics Industry •As one of the world's largest electronic information manufacturing clusters, the Chengdu-Chongqing region has gathered a large number of upstream and downstream enterprises in the electronic information industry chain. In 2023, the cluster's over 2,000 enterprises above designated size achieved a revenue of 17.1 trillion yuan, accounting for 11.3% of the national total. Two-thirds of the world's iPads, 50% of laptops, 10% of smartphones, and 15% of smart projectors are manufactured in the Chengdu-Chongqing region. This demonstrates that the rapid development of the 3C electronics industry inevitably leads to a huge demand for aluminum heat sinks, aluminum frames, and casings. On July 19, 2024, Lezhi County held the Eighth Plenary Session of the 15th County Party Committee, clarifying that it would rely on the rapidly growing market prospects of NEVs and consumer electronics to focus on developing lightweight aluminum extrusions for automobiles and aluminum extrusion components for 3C electronics, forming automotive parts and electronic information industry clusters, and building a distinctive aluminum-based material industry hub in central Sichuan and Chongqing. ► Fen'an Aluminum's Southwest Base Top 5 Aluminum Extrusion Manufacturers in China Top 10 Leading Aluminum Extrusion Brands in China Top 20 Industrial Aluminum Extrusion Manufacturers in China China Manufacturing Champion Enterprise One of the Largest Aluminum Extrusion Product R&D and Manufacturing Enterprises in China 110 patents, including 46 invention patents The Lezhi Base has an annual production capacity of 200,000 mt of new-type high-end aluminum alloy extrusions Representative Products: What Does Lezhi Offer? We are fully committed to supporting enterprises in investing, establishing businesses, and growing in Lezhi ►Park Platform Approved as a provincial-level economic development zone by the Sichuan Provincial Government in January 2019 Park Overview: Planned area of 11.38 sq km, built-up area of 7.81 sq km, encompassing two parks (Xijiao and Wenfeng), with 230 existing industrial enterprises ►Industrial System 1. Aluminum-Based Materials Industry: Focuses on the finished aluminum semis industry, with a priority on attracting enterprises specializing in lightweight automotive aluminum extrusions and 3C electronic aluminum components. 2. Electronic Information Industry: Primarily attracts electronic information enterprises specializing in electronic components, intelligent terminals, camera modules, and aluminum structural components for 3C electronic products. 3. Smart Logistics Industry: Centered around Shanghai Yunda, focuses on attracting logistics supporting projects such as express delivery, e-commerce logistics, urban and rural distribution, and cold chain warehousing. ►Investment Policies Eight Supportive Policies for the Aluminum-Based Materials Industry 1. Support for Building Industrial Ecosystems and Strengthening Industrial Chains: 20% subsidy for fixed asset investments 2. Support for Public Service Platform Construction: 1 million yuan subsidy 3. Support for Enterprises in Attracting Talent and Maintaining Employment Stability 4. Support for Trade Entity Operations 5. Encouragement of Technological Innovation by Enterprises: Maximum reward of 5 million yuan 6. Support for Enterprise Brand Creation 7. Strengthening Financial Service Support 8. Support for Enterprises in Expanding Markets ►Cost Advantages Costs of Water, Electricity, and Gas Resources ►Cost Advantages ►Service Mechanism We sincerely invite: You to invest and establish businesses in Lezhi, become partners in Lezhi's urban development, and experience the "Lezhi Service" and "Lezhi Efficiency" to achieve optimal development and maximum profits. We solemnly promise: To "be present when needed, not interfere when not, act promptly, and ensure tasks are completed effectively," fully guaranteeing project construction and supporting enterprise development. 》Click to view the special report on the AICE 2025 SMM (20th) Aluminum Industry Conference & Aluminum Industry Expo