SMM ADC12 Price Rises by 100 Yuan/mt, Supported by Strong Raw Material Costs Amidst Weak Demand

[SMM Aluminum Express News] Australia’s federal and New South Wales governments are expected to announce a major support package to secure the future of the Tomago aluminum smelter beyond 2028, when its existing electricity contract expires. The package is reported at around A$2.5 billion, shared between the two governments, and is expected to include long-term power arrangements involving government-owned Snowy Hydro. Tomago had warned that rising electricity costs could make operations commercially unviable after 2028. Tomago is Australia’s largest aluminum smelter, producing around 590,000 tonnes per year and consuming roughly 10–12% of New South Wales’ electricity. As part of the arrangement, the smelter’s owners are also expected to commit around A$1 billion in capital and major maintenance investment over the next decade, while the power arrangements would support the plant’s transition toward predominantly renewable electricity.

[SMM Aluminum Express] According to CAAM data, in July, automobile production and sales reached 2.573 million and 2.584 million units, down 6.8% and 8% MoM, and down 0.7% and 0.3% YoY, respectively. From January to July, automobile production and sales reached 17.567 million and 17.602 million units, both down 3.7% YoY. The decline narrowed further compared with H1. In July, NEV production and sales reached 1.576 million and 1.561 million units, up 26.8% and 23.7% YoY, respectively. From January to July, NEV production and sales reached 9.014 million and 9.007 million units, up 9.5% and 9.6% YoY, respectively.

In its half-year results announcement, UAE-based EGA unveiled the production resumption timeline for the Al Taweelah smelter, which was forced to shut down following an attack on 28 March. 18% of the plant’s total 1,262 reduction cells have been restarted. Output is projected to return to pre-incident levels in Q1 2027. Capital expenditure for the recovery is estimated at USD 400 million; most spending will be incurred in 2026, with the remainder falling into 2027. The newly built recycling plant is currently operating at 10% capacity, targeting full production by end-Q4 2026. Output at the alumina refinery fell sharply year-on-year in H1 2026. Its capacity recovered to 50% of pre-incident levels in early July.