SMM, June 23 – In early trading, the SHFE aluminum 2606 contract fluctuated downward, with the overall trading center at the open lower than the same period of the previous trading day. Affected by the declining aluminum prices, buying sentiment in the market improved today. However, due to the high selling sentiment among some sellers bearish on aluminum prices, combined with the outflow of some warrants, the overall available supply in the market was relatively sufficient. Mainstream quotations were at a discount of 40 yuan/mt against the SHFE aluminum 07 contract, with transactions mainly at a discount of 50 yuan/mt against the same contract. Today, in east China, the selling sentiment index was 3.1, up 0.15 MoM; the purchasing sentiment index was 3.06, down 0.14 MoM. The aluminum futures consolidated and pulled back. After the holiday, downstream processing enterprises in the central China market had low buying sentiment, still mainly digesting inventories, and overall market transactions were relatively sluggish. Moreover, premiums were in line with expectations. In recent days, a large amount of warrants flowed out, releasing a great deal of available supply in the market, and suppliers had a weak willingness to hold prices firm. Ultimately, the actual transaction price range in the central China market was around a discount of 80-110 yuan/mt against the SHFE aluminum 07 contract. Today, in the central China market, the selling sentiment index was 2.95, up 0.01 MoM; the purchasing sentiment index was 2.22, unchanged MoM. Inventory side, today, aluminum ingot inventory in major consumption areas fell by 0.3 MoM, with destocking mainly in Guangdong and Wuxi.

Export volumes in May pulled back temporarily due to the procurement pace in Southeast Asia and weaker demand in the Middle East, but the offsetting effect of the new capacity in Southeast Asia cannot be overlooked. The probability of a near-term recovery in the Middle East and Russian markets is low, and exports are likely to remain at low levels. Overall, cumulative exports for the full year are still expected to maintain slight positive growth.

SMM Steel, June 23 – According to SMM statistics, estimated total shipments to mainstream markets this week were 149,200 mt, up 4.48% WoW. By market: Table 1: Comparison of Mainstream Market Arrivals Data source: SMM Steel Shanghai Market: HRC shipments to the Shanghai market decreased WoW this week. Specifically, supply from South China decreased significantly, while shipments from the northern market were basically flat. Looking ahead, short-term fluctuations in shipments from the northern market will be relatively small; in the southern market, shipments from mainstream steel mills were low this week but may accelerate next week, with arrivals in Shanghai expected to increase WoW next week. Chart-1: Shanghai Market Arrivals Data source: SMM Steel Lecong Market: Shipments to Lecong bottomed out this week. Specifically, supply from North China remained unchanged, while two major sources increased WoW, though overall levels remained low. Going forward, short-term arrivals from the north will remain limited; for mainstream sources, arrivals will fluctuate in the near term due to maintenance and shifts in shipment flows. Chart-2: Lecong Market Arrivals Data source: SMM Steel SMM releases HRC shipment data for mainstream market flows every Tuesday. To subscribe or follow more data, please scan the QR code below.

Market feedback indicates that the current FOB price for SAE1006 HRC is $510/mt, with the shipment port being Bayuquan, the destination country being Southeast Asia, and the trading volume being approximately 200 mt.

[Slab] Today, HRC export prices fell by USD 1/tonne day-on-day, with HRC transaction prices at USD 492–501/tonne. Other flat steel prices were also lowered by USD 1–2/tonne. Although domestic export offers continued to decline, traders said overseas demand has not shown any clear recovery. [Rebar] Today, rebar export FOB prices edged down by USD 1/tonne. Market participants reported that enquiries remained relatively muted, with no significant improvement in transactions. Participants continued to adopt a wait-and-see stance. [Billet] Today, export billet offers remained weak but stable, currently quoted at USD 465–468/tonne. Market feedback indicated that Southeast Asia is currently in its traditional demand off-season, while buyers in the Middle East largely remained on the sidelines. Overseas customers showed limited willingness to place orders, and domestic export offers still lacked a clear competitive advantage, leaving transactions generally moderate.

UK precision aluminium sand casting specialist Grainger & Worrall has secured more than GBP 30 million (USD 38.4 million) in new orders during the first half of 2026, driven by demand from aerospace, defence and energy industries. The company is leveraging its expertise in complex aluminium sand casting to supply components for light aircraft engines, specialist vehicle transmissions and data centre applications. To offset weaker demand in its traditional automotive business, Grainger & Worrall launched a diversification strategy 18 months ago, which is now generating significant results. Following the strong order intake, the company approved a GBP 1 million investment programme and plans to recruit 30 additional employees across manufacturing, maintenance and quality departments. The company also intends to further invest in digital sand-printing, metallurgy and advanced engineering capabilities to strengthen its position in high-value aluminium casting markets.

UK precision aluminium sand casting specialist Grainger & Worrall has secured more than GBP 30 million (USD 38.4 million) in new orders during the first half of 2026, driven by growing demand from aerospace, defence and energy sectors. The company is leveraging its expertise in complex aluminium sand casting to supply components for light aircraft engines, specialist vehicle transmissions and data centre applications. Facing weaker demand in its traditional automotive business due to global uncertainty, slower EV adoption, rising energy costs and trade pressures, Grainger & Worrall launched a diversification strategy 18 months ago. Following the strong order intake, the company has approved a GBP 1 million investment programme and plans to recruit 30 additional employees across manufacturing, maintenance and quality functions. The company also intends to further invest in digital sand-printing technology and advanced manufacturing capabilities to support future growth in high-value aluminium casting markets.

Hindalco Industries has commissioned a new aluminium bicycle component manufacturing facility in Chakan, Pune, Maharashtra, strengthening its presence in the mobility sector. The plant will serve both domestic and international markets and produce aluminium bicycle frames, rigid forks, wheel rims, handlebars and other lightweight components. Equipped with advanced manufacturing and finishing technologies, the facility is expected to produce approximately 500,000 bicycle frames and forks, 750,000 handlebars and 800,000 pairs of wheel rims annually. The investment aligns with Hindalco’s strategy to expand its portfolio of value-added aluminium products and increase its focus on mobility applications. The company continues to diversify beyond primary aluminium into higher-value segments, including flat-rolled products, extrusions, aluminium foils and aerospace-grade aluminium alloys, supporting growing demand for lightweight and sustainable transportation solutions.

[Domestic Iron Ore Brief] The domestic ore market in Liaoxi showed no significant fluctuations. The current EXW price for 66% grade iron ore concentrates on a wet basis excluding tax is 730-735 yuan/mt. Some traders' inquiry activity was moderate, but most ore processors still held back from selling and asked high prices. Steel mills had a strong cost-control mindset, and depending on their own demand, their inquiry and purchase prices diverged but remained generally low. Although some ore processors had stockpiles in inventory, they considered that available resources in the spot market remained tight.

[Sheets & Plates] The HRC export price dropped $1/mt DoD today, with the transaction price at $492-501/mt, while prices of other sheets & plates have been lowered by $1-2/mt. China’s export offers have been cut continuously, but according to trader feedback, demand in markets outside China has not been significantly released.