SMM August 7 – In early trading, the center of the SHFE aluminum 2608 contract continued to rise notably from yesterday, but with continuous destocking and a widening Contango structure, most suppliers were unwilling to lower prices, and actual transaction prices for A00 aluminum ingots were at a discount of 40-20 yuan/mt against the August contract. Today, the selling sentiment index in east China was 3.15, up 0.02 day-on-day; the buying sentiment index was 3.09, up 0.13 day-on-day. Aluminum futures continued to rise, and with Friday's stockpiling cycle in the central China market, buying sentiment from downstream processing enterprises remained subdued. Trading firms engaged in both spot and futures markets made large purchases, and given the wide discount, major suppliers' inclination to hold prices firm and hold back from selling grew increasingly notable, driving a steady improvement in premiums and discounts in the market. Ultimately, actual transaction prices in the central China market were in the range of a discount of 120-160 yuan/mt against the SHFE August contract. Today, the selling sentiment index in central China was 3.01, up 0.04 day-on-day; the buying sentiment index was 2.97, up 0.01 day-on-day. On the inventory front, aluminum ingot inventories in major consumption areas decreased by 8,500 mt day-on-day, with Guangdong, Wuxi, and Gongyi all showing destocking.

[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 August 6 – PV Aluminum Extrusion: Within this week’s surveyed sample, PV frame enterprises primarily focused on executing orders on hand, with the industry’s operating rate remaining stable. Some top-tier players continued to stay high. During the week, the supply-demand pattern of downstream PV modules showed no significant changes. The August production schedule for PV module enterprises is expected to edge up MoM from July, providing a stable demand floor for the operating rates of PV frame enterprises. In the near term, the operating rate of PV frame enterprises is expected to continue stable operations. Raw Material Prices: During the period (August 3–August 6, 2026), the SMM A00 weekly average price stood at 23,680 yuan/mt, up 1.4% WoW from the previous period. Overall, divergences persisted in the Middle East situation. Although the US Fed did not raise interest rates in July, its overall stance remained hawkish. Fundamentals continued their deficit, with aluminum ingot inventory destocking. In the short term, aluminum prices are expected to consolidate on a strong note. Next week, the most-traded SHFE aluminum contract is expected to trade within the range of 23,200–24,200 yuan/mt, while LME aluminum is expected to trade within the range of $3,100–$3,250/mt. Going forward, close attention should be paid to the progress of production resumptions and new project commissioning plan dynamics in the Middle East.

[SMM Aluminum Weekly Review: Weekly Aluminum Ingot Destocking Pace Shrinks; Amid Macro and Fundamental Tug-of-War Between Longs and Shorts, Aluminum Prices Expected to Consolidate on a Strong Note in the Short Term]

SMM August 6 news: In the morning session, the SHFE aluminum 2608 contract traded with its center notably higher than yesterday. Current prices have suppressed downstream purchasing, but with delivery approaching some suppliers were unwilling to sell at low prices. Today, quotes for SHFE aluminum were mostly near a discount of 30 yuan/mt against the August contract. The east China selling sentiment index was 3.13, up 0.03 DoD, and the purchasing sentiment index was 2.96, up 0.10 DoD. Today, the trading atmosphere in the central China market held at the level of the previous two days. Trading firms engaging in both spot and futures markets actively purchased to capture price spreads, and with deep discounts, suppliers showed a stronger willingness to hold prices firm and hold back from selling, driving market transaction quotes to climb continuously. In the end, actual transaction prices in the central China market were around discounts of 140-170 yuan/mt against the SHFE aluminum August contract. The central China selling sentiment index was 2.97, down 0.02 DoD, while the purchasing sentiment index was 2.96, up 0.02 DoD. On the inventory front, aluminum ingot inventory in major consuming regions fell by 14,500 mt DoD, with Guangdong, Wuxi, and Gongyi all seeing destocking.

On July 23, 2026, a delegation from Shanghai Metals Market (SMM) conducted an on-site visit to TRAN HONG QUAN METALLURGY Co., Ltd. (THQ) in Vietnam. The delegation included: • Logan Lu, CEO of SMM • Cason Lou, Director of Aluminum Processing, Marketing Department • Lexi Chen, Key Account Manager for Overseas Information Sales • Khai Yuen Chin, Senior Overseas Aluminum Analyst The two sides held in-depth discussions on the development of Vietnam’s primary aluminum projects, domestic aluminum supply capacity, supporting industrial infrastructure, and future market strategies. The visit also provided a clearer picture of the changes taking place across Vietnam’s aluminum industry. A new industrial landscape is gradually emerging—one built on resource advantages, driven by breakthroughs in primary aluminum production, and extending further into downstream processing and manufacturing. A Landmark Development: Vietnam Begins Producing Its Own Primary Aluminum On July 27, Vietnam’s first batch of aluminum ingots with a purity of 99.71% was successfully produced at THQ’s Dak Nong aluminum smelter project. The facility is a pilot plant using electrolytic smelting technology to produce primary aluminum. This means that Vietnam now possesses not only abundant bauxite resources and alumina production capacity, but also the capability to produce primary aluminum. For the first time, the country has established a complete “bauxite–alumina–primary aluminum” value chain. The significance of this development goes beyond the addition of a new aluminum smelter. More importantly, it indicates that Vietnam is beginning to move away from a resource-export-oriented model and toward higher-value materials production and industrial processing. Three Major Changes Are Reshaping Vietnam’s Aluminum Value Chain 01 From Resource Exports to Domestic Processing Vietnam holds significant bauxite reserves, with particularly strong resource advantages in the Central Highlands. In the past, Vietnam largely relied on alumina exports while continuing to import substantial volumes of primary aluminum. Going forward, a greater proportion of domestically produced alumina is expected to enter the electrolytic smelting process, allowing more industrial added value to remain within Vietnam. This transition is also consistent with Vietnam’s broader efforts to promote the deep processing of mineral resources and upgrade its manufacturing sector. 02 From Individual Projects to an Integrated Industrial Value Chain The supporting infrastructure developing around Vietnam’s alumina and aluminum projects includes: • Reliable power supply systems • Supporting industrial park infrastructure • Raw material supply networks • Downstream aluminum processing capacity • Port and logistics facilities Together, these factors support more than the operation of a single factory—they create the foundation for an entire industrial cluster. Vietnam is gradually establishing an interconnected industrial structure spanning resource development, smelting, processing, and manufacturing. 03 From Cost Advantages to Regional Supply Chain Advantages For companies evaluating Vietnam today, its importance lies not only in production costs but increasingly in its strategic position within regional supply chains. Vietnam connects with China’s supply chain, the broader ASEAN market, and export routes to Europe and the United States. It is also attracting the relocation and expansion of industries including new energy, electronics, and automotive manufacturing. This is why a growing number of international companies are reassessing the strategic value of Vietnam’s aluminum industry. It also represents an important window of opportunity for Chinese aluminum companies seeking to expand into the Vietnamese market. Tran Hong Quan Metallurgy Co., Ltd. Founded in 2000, Tran Hong Quan is a major privately owned diversified industrial group in Vietnam, with businesses spanning energy, trading, hospitality, metallurgy, and other sectors. Its subsidiary, Tran Hong Quan Metallurgy Co., Ltd. (THQ Metallurgy), is the investor and developer of the Dak Nong aluminum smelter project. The Dak Nong project is regarded as Vietnam’s first primary aluminum production project and represents a critical link between the country’s alumina resources and its downstream aluminum processing and manufacturing industries. Once operational, the project will produce aluminum ingots, aluminum slab ingots, billets, and other products. It is expected to contribute approximately US$700 million annually to the local economy, significantly strengthen Vietnam’s domestic primary aluminum supply capacity, and reduce the country’s dependence on imported aluminum. In 2026, the project completed its first power delivery and entered the integrated commissioning stage, marking a critical step toward the commercial production of primary aluminum in Vietnam. Join the Conversation at SMM AICE 2026 Connect with aluminum producers, processors, traders, manufacturers, certification organizations, industry associations and decision-makers from across Southeast Asia and the global market. Explore aluminum pricing, primary aluminum supply, processing technologies, low-carbon development, CBAM compliance and new opportunities for regional cooperation. Location: Ho Chi Minh City, Vietnam Date: November 19–20, 2026 Register now: bit.ly/AICE26 and secure your Super Early Bird Pass and save up to USD 200. Register before August 31, 2026. #SMMAICE2026 #AluminumIndustry #VietnamAluminum #AluminumPricing #SoutheastAsia

[China's Aluminum Inventory Pullback, Multiple Factors in Play, Aluminum Prices Drift Higher] Overall, recently the macro front has improved, the US Fed's near-term hold on rate hikes has eased the marginal constraint on the non-ferrous metals sector, and China's proportion of liquid aluminum continues to rise while aluminum inventory destocking has resumed, together underpinning aluminum prices. However, the continuous rollout of long-term aluminum capacity outside China, weak traditional end-use demand in China during the off-season, and the recent easing of geopolitical tensions in the Middle East are putting some upward pressure on aluminum prices. It is expected that aluminum prices will maintain a trend of consolidating on a strong note.

SMM August 5: In the morning session, the center of the SHFE aluminum 2608 contract edged slightly higher than yesterday, while downstream purchasing sentiment was sluggish. The aluminum price center moved up, and the destocking pace slowed. SHFE aluminum retreated after a rapid rise in the night session, and there were slight divergences in market quoting attitudes. Today, SHFE aluminum spot premiums and discounts mainly centered in a range from a premium of 8-40 yuan/mt to a discount of 8-20 yuan/mt. The shipment sentiment index in east China was 3.1, up 0.01 from yesterday; the procurement sentiment index was 2.86, up 0.06 from yesterday. Today, the center of aluminum futures edged down slightly from the previous day's morning session. Coupled with relatively wide overall quoted premiums and discounts, traders in central China showed a notable willingness to hold prices firm and hold back from selling, driving market prices steadily higher, while the shipment sentiment index continued to decline. Transactions were mostly driven by hedging arbitrage by futures and spot traders, and downstream processing enterprises showed limited purchasing interest. Ultimately, actual transaction prices in central China centered around a discount of 170-200 yuan/mt against the SHFE aluminum August contract. The shipment sentiment index in central China was 2.99, down 0.2 from yesterday; the procurement sentiment index was 2.94, up 0.03 from yesterday. In terms of inventory, aluminum ingot inventories in major consumption regions fell by 9,500 mt from the previous day, with destocking seen in Guangdong, Wuxi, and Gongyi.

[Aluminum Divergence Consolidation Recovery Inside and Outside China; Middle East Tensions Ease, Disturbing Aluminum Price Risk Premium] Overall, recent improvement on the macro front, interest rate hike expectations remaining on hold and easing the marginal constraints on the nonferrous metals sector, along with the continued rise in the proportion of liquid aluminum in China, have supported aluminum prices. However, the continued rollout of long-term aluminum capacity outside China, weak traditional end-use demand in China during the traditional off-season, and disturbances from Middle East geopolitical uncertainties are expected to result in aluminum prices consolidating on a strong note.

SMM, August 4: In early trading, the SHFE aluminum 2608 contract moved significantly higher from yesterday's center, affecting downstream purchase sentiment. Aluminum price center moved up, and the destocking pace slowed. But as it was the beginning of the month, some enterprises held prices firm. Today, spot premiums for SHFE aluminum were mainly traded at 8-30 yuan/mt to 08-10 yuan/mt. Today, the east China shipment sentiment index was 3.09, up 0.02 MoM; the purchase sentiment index was 2.80, down 0.13 MoM. Aluminum futures rose again. Today, the central China market remained sluggish, with downstream processing enterprises' purchase willingness staying low, while traders tended to buy in large quantities when discounts were low to earn price spreads, leading to active buying sentiment among traders. In the end, the actual transaction price range in the central China market was around a discount of 190-210 yuan/mt against the SHFE aluminum 08 contract, with a gradually strengthening trend. Today, the central China market shipment sentiment index was 3.20, unchanged MoM; the purchase sentiment index was 2.91, up 0.06 MoM. In terms of inventory, today the aluminum ingot inventory in major consumption regions decreased by 2,000 mt MoM, with only the Gongyi area seeing inventory buildup.