[SMM Analysis of Downstream Aluminum Sector: PMI of Aluminum Processing Industry Declined 1.8% MoM in May - Weak Domestic Demand Across Most Sectors, with Significant Structural Differentiation] The composite PMI of the aluminum processing industry in May was recorded at 49.8%, approaching the 50 mark but still in contraction territory, down 1.8 percentage points MoM and up 8.7% YoY.

[SMM Data：Casting Ingot Production in North China Declined Significantly in May, While Proportion of Liquid Aluminum Rose Sharply]According to SMM statistics, domestic aluminum production in May 2025 (31 days) increased by 2.7% YoY and 3.4% MoM. The operating capacity of domestic aluminum smelters remained stable MoM in May, mainly due to the absence of new projects, maintenance, or production cuts during the period, coupled with sufficient supply of raw materials for aluminum production and moderate profits. The proportion of liquid aluminum in domestic aluminum smelters rose significantly in May, with the industry's proportion of liquid aluminum increasing by 1.48 percentage points MoM to 75.5% this month. This was mainly due to reduced casting ingot production and an increased proportion of liquid aluminum in enterprises across multiple regions in north China. It is expected that the proportion will continue to fluctuate at highs in the future. Based on SMM's data on the proportion of liquid aluminum, domestic aluminum casting ingot production in May decreased by 6.15% YoY to approximately 913,000 mt.

[SMM Data: Casting Ingot Production in North China Declined Significantly in May, Proportion of Liquid Aluminum Rose Sharply] SMM reported on May 30: According to SMM statistics, domestic aluminum production in May 2025 (31 days) increased by 2.7% YoY and 3.4% MoM. The operating capacity of domestic aluminum smelters remained stable MoM in May, mainly due to the absence of new projects, maintenance, or production cuts during the period, coupled with sufficient supply of raw materials for aluminum and moderate profits. The proportion of liquid aluminum in domestic aluminum smelters rose sharply in May, with the industry's proportion of liquid aluminum increasing by 1.48 percentage points MoM to 75.5% this month. This was mainly due to reduced casting ingot production and an increase in the proportion of liquid aluminum among enterprises in multiple regions of north China. It is expected that the proportion will continue to fluctuate at highs. Based on SMM's data on the proportion of liquid aluminum, domestic aluminum casting ingot production in May decreased by 6.15% YoY to approximately 913,000 mt.