China's Secondary Aluminum Alloy Ingot Inventory Drops 619 mt Amid Production Cuts and Strong Demand

Dongxing City in Fangchenggang joined hands with Jiangsu Wotu Intelligent Transportation Technology Co., Ltd. to hold a signing ceremony for the Fangchenggang V-Process EPC Aluminum Alloy Integrated Two-Wheeler High-End Equipment Production Site project. It is understood that the first phase of the project will renovate existing factory buildings in the industrial park and plans to establish specialized production lines for new national standard e-bikes and electric motorcycles to rapidly advance production and operations. The second phase plans to construct new production facilities, office buildings, and employee dormitories to build an integrated modern smart manufacturing industrial park.

Qiya Guizhou Group's fine alumina project achieved a significant milestone, with the first 200,000 mt production line officially commencing operations on May 30. It is understood that the project has a planned total annual capacity of 800,000 mt, and the entire project is expected to be completed by 2027.

[China Inventory Continued to Decline This Week, Aluminum Prices Moving Sideways with LME Outperforming SHFE in the Short Term] If the US-Iran ceasefire agreement materializes, it would significantly ease Middle East supply concerns, but recurring military frictions leave the peace outlook uncertain, and the short-term geopolitical premium tends to converge but has not fully dissipated. The rigid supply gap outside China supported a relatively strong LME aluminum pattern. China's inventory continued to decline but remained at historically high levels, capping the upside elasticity of SHFE aluminum, and the divergence between LME and SHFE is expected to persist in the short term. Going forward, key areas to watch include whether China's inventory drawdown accelerates, whether the US-Iran agreement can be formally signed, further clarity on the US Fed's interest rate path, and whether China is further tightening regulations on aluminum capacity operations. Overall, aluminum prices are expected to move sideways in the short term with LME outperforming SHFE.