Trading Turns Brisk in South China Market after SHFE Aluminum Falls, SMM Reports

[SMM Aluminum Express News] Rio Tinto has partnered with the Queensland Government and Commonwealth Government to secure the long-term future of the Boyne aluminum smelter in Gladstone. The deal includes A$2 billion in government funding through 2040 and builds on Rio Tinto’s PPAs underpinning A$7.5 billion in new renewable energy and storage. It ensures Boyne Smelters Limited will remain cost-competitive and continue production beyond its current 2029 power contract as part of the Future Made in Australia.

[SMM Aluminum Express News] Iran has effectively turned the Strait of Hormuz into a controlled corridor, with at least 20 tankers rerouted near Qeshm and Larak via a regime-approved path. Some ships reportedly pay up to $2M for passage. Tehran allows non-aggressor vessels through while restricting others; China, India, Turkey, Pakistan, and Thailand have coordinated for safe transit.

[Overnight, LME Aluminum and SHFE Aluminum Edged Up Slightly, but Aluminum Prices Faced Short-Term Pressure at High Levels] Continued destocking in LME inventory provided bottom support for LME aluminum, but amid tightening fund liquidity and profit-taking by bulls, upward momentum remained insufficient, and the backwardation structure weakened somewhat. China’s social inventory rose to a high for the same period in nearly five years, and the inventory buildup cycle had yet to end, with high inventory and weak spot fundamentals jointly weighing on upward momentum. The divergence between domestic and overseas drivers continued, the SHFE/LME price ratio kept weakening, and prices were mainly under pressure in the short term.