Aluminum Production Outside China Down 10.2% YoY in April 2026, Expected to Continue Declining

According to SMM research, in May 2026, the aluminum water proportion varies among domestic aluminum producers. Overall, as overseas demand for domestic aluminum fabricated products keeps picking up, the aluminum water proportion is expected to see a mild rebound. Overall, the aluminum water proportion is projected to rise by 0.5 percentage points to 75.8%.

[SMM Aluminum News] This week, the operating rate of leading enterprises in China's secondary aluminum industry edged down WoW. On one hand, amid shrinking orders, downstream enterprises generally reduced procurement volumes, maintaining a pace of just-needed, small-batch restocking. On the other hand, some enterprises halted production and went on early holidays due to insufficient orders or inventory risk control considerations, further suppressing market transaction activity and dragging down the operating rate of secondary aluminum producers. As off-season characteristics in May further intensified, if downstream resumption pace remained slow and new orders failed to follow through, the industry's operating rate would still face certain downward pressure.

[SMM Aluminum Alloy Daily Review] The ADC12 market overall remained in the doldrums today. SMM ADC12 prices were lowered by 100 yuan/mt to 23,800 yuan/mt. Affected by the pullback in primary aluminum prices and weak downstream demand, enterprises actively lowered their offers, and the mainstream transaction center shifted downward. With the Labour Day holiday approaching, downstream enterprises gradually entered production suspension or production cuts mode. Pre-holiday stocking demand was notably insufficient, and market trading sentiment turned sluggish.