SHFE Aluminum Surges as Market Gets Sensationalized by Off-Peak Production Program in Hebei, SMM Reports 

[SMM Cast Aluminum Alloy Morning Comment: May Auto Market Domestic Demand Under Pressure, Exports Strong; Narrowing Price Difference Between A00 Aluminum and Scrap Tightens Raw Material Supply] The ADC12 market traded steadily on Wednesday, with the SMM ADC12 price remaining flat at 23,900 yuan/mt. This week, cast aluminum alloy futures diverged from SHFE aluminum, with cast aluminum futures steady to firm while SHFE aluminum fell below the 24,000 yuan/mt mark. In the spot market, A00 aluminum prices declined for consecutive sessions, but ADC12 prices remained firm. The spread between the two has returned to positive territory, ending the inversion since April, underscoring the resilience of alloy prices.

[Aluminum Ingot Social Inventory Destocking Accelerates Significantly, Relative High Level Still Caps Aluminum Price Upside Room] On the fundamentals side, the supply gap outside China is expected to provide strong bottom support for aluminum prices, and expectations of rising energy costs also form a bullish driver. This Thursday, the destocking pace of China’s social inventory of aluminum ingots accelerated notably, effectively easing the earlier high inventory pressure. However, China’s high inventory pressure remains relatively prominent, which is expected to cap the upside room for domestic aluminum prices. In the short term, domestic aluminum prices are expected to mainly fluctuate and consolidate.

Italy-based Laminazione Sottile Group has been certified against the ASI Chain of Custody Standard V2 (2022), covering Laminazione Sottile S.p.A., Italcoat S.r.l. and IPS Industrial Packaging Solution S.r.l. The certified operations serve packaging, food and beverage, pharmaceutical, HVAC-R, automotive, aerospace and construction sectors through the production of aluminum coils, sheets, trays and flexible packaging materials. ASI stated that the certification strengthens material traceability and responsible sourcing practices across the aluminum value chain. One minor non-conformance was identified during the audit and will be addressed through corrective actions and follow-up verification.