The Southeast Asian secondary aluminum market remained broadly stable this week. Aluminum scrap prices moved within a narrow range, while ADC12 domestic prices were largely unchanged and FOB offers edged higher on firm raw material costs. Meanwhile, imported aluminum scrap prices in China continued to rebound as import margins improved, with several cargoes reportedly scheduled to arrive in mid-August, providing additional support to market sentiment.

[SMM Aluminum Alloy Daily Review] Futures side, the aluminum alloy 2610 contract opened at 23,440 yuan/mt today, traded within the range of 23,420–23,545 yuan/mt during the session, and closed at midday at 23,520 yuan/mt, up 55 yuan from the settlement price, gaining 0.23%. Spot side, ADC12 market quotes today mainly consolidated on a strong note, with the SMM ADC12 price edging up by 50 yuan/mt. Currently, primary aluminum prices still provide cost support, and enterprises maintain the willingness to hold prices firm. However, end-use demand remains persistently weak, downstream procurement pace is relatively cautious, market transaction improvements are limited, and downward price adjustment lacks momentum while upward pass-through is also constrained by demand.

[ADC12 Price Daily Review: Aluminum Alloy Futures Drifted Higher, Spot Aluminum Alloy Edged Up Slightly] Today, ADC12 market offers mainly consolidated on a strong note. SMM ADC12 price edged up by 50 yuan/mt.

[SMM Cast Aluminum Alloy Morning Comment: Futures Prices Under Pressure and Consolidating at High Levels, Off-Season Suppresses Upside Room for Spot Prices] Overnight, the aluminum alloy 2610 contract opened at 23,430 yuan/mt, fluctuated within a range of 23,380–23,475 yuan/mt, closed at 23,465 yuan/mt, up 0.30%. During the session, it consolidated around the average price line in a seesaw battle, edged up slightly in the late session; trading volume decreased MoM......

[Hormuz Situation Uncertain, Off-Season Downstream Weakness Constrains Aluminum Price Upside Room] Overall, divergences persist in the Middle East situation. Although the US Fed did not hike rates in July, its overall stance remains hawkish. The fundamental deficit continues, and aluminum ingot inventory is destocking. In the short term, aluminum prices are expected to consolidate on a strong note. Going forward, close attention should be paid to the progress of production resumptions in the Middle East and the dynamics of new project commissioning plans.

[SMM Analysis]Cost Support and Demand Constraints Coexist, ADC12 Consolidates at Highs, Awaiting Peak Season Breakthrough

[SMM Analysis: Cost Support and Demand Constraints Coexist, ADC12 Consolidates at Highs Awaiting Peak Season Breakthrough] Entering August, ADC12 prices are expected to continue to consolidate at highs. Cost side, currently tight supply of aluminum scrap and high tax invoice compliance costs...

[Weekly Review on Aluminum Scrap and Secondary Aluminum: ADC12 Price Moves Sideways at High Levels as Cost Support Overlaps with Demand Constraints] This week, China’s aluminum scrap market prices were relatively stable, and the price difference between A00 aluminum and aluminum scrap widened again against the backdrop of aluminum scrap struggling to catch up. On the price side, driven by macro and capital sentiment, primary aluminum prices continued to rise. As of August 6, SMM A00 aluminum price closed at 23,800 yuan/mt, significantly up by 170 yuan/mt compared to last Thursday, while aluminum scrap raw material prices showed limited fluctuations overall.

[ADC12 Price Daily: Futures Prices Pull Back on Resistance, ADC12 Spot Stable Amid Cautious Sentiment] Today, ADC12 market quotes were mainly stable, and the pace of price adjustments remained cautious. As aluminum prices rose, cost support continued to strengthen, and enterprises' willingness to hold prices firm increased somewhat. However, constrained by limited recovery in end-use demand, most enterprises still chose to wait and see, and quote adjustments were relatively restrained.

[SMM Cast Aluminum Alloy Morning Comment: Contract Hits New Stage High, Aluminum Alloy Market Consolidates at Highs, Drifting Higher] Overnight, the aluminum alloy 2610 contract opened at 23,435 yuan/mt, shot up to 23,540 yuan/mt, hitting a new stage high, then pulled back to a low of 23,380 yuan/mt, and closed at 23,450 yuan/mt, up 20 yuan, or 0.09%, from the settlement price.