China's Secondary Aluminum Alloy Ingot Inventory Drops by 277 MT, Foshan Leads Destocking

Alumina Transaction: On May 19, 2026, 30,000 mt of alumina were transacted at a transaction price of $330/mt FOB Western Australia, for August shipment.

In April 2026, China's alumina imports and exports were as follows: imports reached 610,080 tonnes, up 80.33% month-on-month and a massive 5,598.77% year-on-year; exports stood at 516,860 tonnes, up 146.8% month-on-month and 96.62% year-on-year. The sharp increase in both imports and exports was mainly due to the geopolitical conflict in the Middle East, which caused large quantities of Middle Eastern alumina to be diverted into China. The surge in exports was also largely because these imported alumina shipments were re-exported from China to the Middle East after transshipment.

[Middle East Geopolitical Risks Cool Down, Aluminum Prices Under Pressure in the Short Term] On the macro front, US President Trump once again signaled readiness for war against Iran, claiming military action was prepared, while Iran issued a tough warning that it would "open a new front." Geopolitical conflict risks escalated again, with market risk-aversion sentiment pushing up risk premiums. China's inventory at high levels remains the core factor suppressing significant price rallies. Additionally, weak spot market transactions further limited the upside room for aluminum prices. In the short term, aluminum prices are expected to continue the pattern where the overseas market outperforms the domestic market, fluctuating at highs.