Secondary Aluminum Alloy Inventory Rises for 5th Week, Off-Season Impact Deepens

At the earnings briefing on May 15, Hongqiao Holdings disclosed that the company expects capital expenditure of approximately 9 billion yuan in 2026. Among this, the aluminum processing segment will focus on advancing the upgrade of supporting processing capacity in the Yunnan region, enhancing the local absorption capability of aluminum in that region, thereby further consolidating and expanding the synergistic advantages of the entire industry chain. It is worth noting that some of the projects were announced in March 2026 and have been included in the first batch of provincial-level major project list of Yunnan Province for 2026, with public disclosure already completed. Currently, the company has no new expansion plans for the aluminum processing segment.

[SMM Cast Aluminum Alloy Morning Comment: ADC12 Generally Stable with Slight Fall amid Tug-of-War between Sellers and Buyers] Last Friday, the ADC12 market overall operated in a generally stable with slight fall manner. Some enterprises followed with slight declines driven by weakening aluminum prices, while others maintained a wait-and-see stance with stable pricing due to high costs and tight compliant supply. Supply-demand structure perspective, demand side performance remained mediocre, suppressing price rise; however, the supply side saw marginal tightening due to factors such as invoice shortages, import contraction, and phased production cuts, providing certain support for prices. Against this backdrop, ADC12 prices are expected to continue to move sideways in the short term, with relatively limited downside room.

[SMM Aluminum News Flash] According to SMM data, the weekly proportion of liquid aluminum increased by 0.12 percentage points WoW this week.