Primary aluminium inventories extend decline over weekend

[SMM Aluminum Express News] India auctioned a record 200 mineral blocks in FY 2025–26, including 30 bauxite blocks, a key focus for aluminum and industrial supply chains. This marks the highest annual auction volume ever, with bauxite ranking third after limestone (76) and iron ore (40). The auctions strengthen domestic raw material security and value addition under transparent processes.

[SMM Aluminum Express News] President Prabowo Subianto emphasized that downstream processing (hilirisasi) will create high-quality job opportunities, especially for young people in industry and technology sectors. He highlighted Indonesia's huge potential in the natural resource-based automotive industry, using the example of bauxite: "We have bauxite. Bauxite is processed into alumina, then into aluminum. Aluminum becomes cars. But we don't process our bauxite. Japan doesn't have bauxite, yet they make the best cars. Right? This is what we have to do." The statement underscores the government's push to move up the value chain—from raw bauxite to finished products like aluminum components for vehicles—creating jobs, increasing added value, and reducing reliance on raw exports.

[Macro-Geopolitical Risks Have Yet to Subside, and Aluminum Prices Maintain a Fluctuating Trend] Continued destocking in LME inventory has provided bottom support for LME aluminum, but with tightening liquidity and profit-taking by bulls, upside momentum remained insufficient, and the backwardation structure has weakened somewhat. China’s social inventory rose to a high for the same period in nearly five years, and the inventory buildup cycle has yet to end; high inventory and weak spot fundamentals jointly suppressed upward momentum. Divergence between domestic and overseas drivers continued, the SHFE/LME price ratio kept weakening, and prices were mainly under pressure in the short term.