August 31 News: According to SMM statistics, aluminum billet inventory in mainstream consumption areas in China totaled 134,000 mt on August 28, up 1,000 mt from Monday and 9,500 mt WoW. This week, aluminum billet inventory showed a slight buildup trend, interrupting the continuous decline over the past two weeks, with inventory trends fluctuating. The weekly inventory increase was mainly driven by higher arrivals of billets from north China to warehouses in south China, while inventories in other regions remained stable. Notably, supply in Nanchang remained tight, maintaining a small decline. Regarding outflows from warehouses, SMM data showed total aluminum billet outflows reached 48,000 mt during 8.18-8.24, down 1,000 mt WoW.

On Tuesday, US President Trump mentioned during a press conference with South Korean President Lee Jae-myung that if China were to halt the export of rare earth magnets again, "countermeasures such as imposing 200% tariffs would be taken." However, he acknowledged that such high tariffs would signify a breakdown in bilateral trade. Subsequently, China's Foreign Ministry responded, stating that China consistently handles and advances China-US relations based on the principles of mutual respect, peaceful coexistence, and win-win cooperation, while firmly safeguarding its own sovereignty, security, and development interests.

Malaysia’s rebar market has recently remained firm, with prices showing a steady-to-strong trend. This round of price support is primarily driven by a significant rise in production costs combined with a tightening supply structure, jointly pushing up overall market levels.

[SMM Analysis] From August 22 to 26, 2025, the U.S. Internal Revenue Service (IRS) issued clarifications via NPR, CNBC and other outlets announcing new adjustments to the soon-expiring electric-vehicle (EV) tax credit—worth up to $7,500. Consumers who enter into a legally binding purchase contract with a dealer and make any form of down payment or trade-in by September 30, 2025 (inclusive) will lock in the federal EV tax credit; the actual delivery date after that will no longer affect eligibility.

Nickel Prices and Supply-Demand Dynamics Drove Intermediate Product Prices Higher This Week

 As of press time, the high-low price spread in 2025 narrowed from 2400 yuan to4350 yuan, with magnesium price volatility shrinking 55% YoY, driven primarily by the strategic optimization of domestic demand structure. The structural upgrade of technical domestic demand replacing resource exports has facilitated stable magnesium price movements.

On the raw material side, dolomite prices show upward momentum influenced by reforms in the tender model, while demand-side magnesium smelting production rose 5.7% MoM to 85,000 mt, providing strong support. The ferrosilicon market remains supply-heavy with weak demand, balancing electricity price support against accumulating inventory. In energy costs, lump coal faces pressure from loose supply-demand dynamics, while semi-coke prices hold firm due to maintenance cycles. For hidden costs, normalized temperatures boosted smelting efficiency by 10%-15%, coupled with eliminated heat-prevention expenses and enhanced production stability, driving a notable pullback in overall costs.