During this period, the tender pricing for June by downstream benchmark aluminum enterprises was finalized. The market price of aluminum fluoride continued to weaken, with the tender price of benchmark enterprises in June declining by 150-200 yuan/mt to 9,630-9,700 yuan/mt. Currently, the aluminum fluoride market continues to experience weak supply and demand. After entering June, prices of both raw materials and finished products have declined, and corporate profitability has not improved. Most enterprises are experiencing losses, with low operating rates that are unlikely to increase in the short term. Coupled with the absence of positive factors on the demand side, aluminum fluoride prices are expected to remain stable in the short term. Additionally, with the anticipated decline in raw material prices in June, prices are expected to remain weak next month.

A certain aluminum enterprise in Shandong has adjusted the benchmark tender price for prebaked anodes in June 2025, which remained flat MoM. Meanwhile, a major domestic prebaked anode sales company simultaneously lowered its sales pricing, with a MoM decrease of 142 yuan/mt. Despite varying performances in the raw material market, overall costs have declined. According to SMM data, as of June 6, the comprehensive cost of prebaked anodes in China fell to 4,670 yuan/mt, a significant decrease of 6.32% from May 9. The reduction in cost-side pressure has supported the industry's profitability. Based on a one-month production cycle, the profitability of the prebaked anode industry has significantly improved, with theoretical profitability increasing by approximately 350 yuan/mt MoM. Most prebaked anode enterprises are now in a state of marginal profitability. Entering June, domestic refinery maintenance and production resumptions coexist, with overall supply-side fluctuations remaining relatively small. However, with the continuous arrival of overseas petroleum coke and weak domestic demand, port inventories of petroleum coke have continued to rebound, resulting in a relatively abundant supply in the petroleum coke market. On the demand side, the operating rate of the prebaked anode industry is high, but enterprises' procurement enthusiasm is low, preferring a strategy of restocking at low prices. Meanwhile, orders in the anode material and graphite electrode markets are weak, and the previous stockpiling by glass and cement plants has been largely completed, leading to weakened demand. Therefore, the demand side remains generally sluggish. SMM expects petroleum coke prices to continue their downward trend in June, thereby exerting a sustained impact on the cost side of prebaked anodes. Considering the aforementioned factors, SMM expects prebaked anode prices to remain in the doldrums next month.

[SMM Midday Review of Spot Aluminum: East China Premiums Continue to Narrow, Market Focuses on Selling] Inventory side, according to SMM's domestic aluminum ingot inventory data, the domestic electrolytic aluminum ingot inventory in three regions stood at 371,000 mt on June 6, experiencing a destocking of 10,000 mt compared to the previous day. In the short term, the limited arrival of goods is conducive to maintaining premiums, but downstream acceptance of high premiums has decreased. Coupled with weakening demand during the off-season and a backdrop of weak supply and demand, holders are actively selling, and premiums and discounts are expected to pull back mainly.

[SMM Aluminum Morning Meeting Summary: Signals of Easing Trade Frictions Transmitted, Aluminum Prices May Remain in the Doldrums in the Short Term] On the macro front, the phone call between Chinese and U.S. leaders conveyed positive signals of easing trade frictions. If this can prompt the U.S. to revoke unfavorable measures, it will further improve the external environment for the aluminum market. Coupled with the European Central Bank's interest rate cut, which provides a relatively direct and clear positive stimulus for aluminum prices and offers additional support. Fundamentals side, the operating capacity of domestic electrolytic aluminum remains stable, with a slight expected decrease in subsequent casting ingot volumes. Domestic aluminum ingot inventory temporarily maintains a destocking trend. Cost side, the impact of the Guinea mine incident on alumina prices has eased somewhat, and the real-time cost of electrolytic aluminum has declined slightly MoM. On the demand side, there is dual pressure from domestic seasonal weakness and trade uncertainties. In the short term, the operating rate of domestic aluminum processing enterprises will be under pressure, with the off-season atmosphere becoming more pronounced. New orders in sectors such as building materials, PV, and automobiles are all showing signs of weakness. Overall, the current low inventory and the expectation of a higher proportion of liquid aluminum provide strong support for aluminum prices. However, the overall bearish macro environment during the week has caused aluminum prices to face downward pressure at high levels, and the off-season pressure on the demand side limits upside room. Spot aluminum in major consumption areas may soon face a situation of weak supply and demand, with aluminum prices likely to remain in the doldrums and consolidate in the short term.

Details of the hot topics in the aluminum market this week (June 03-05, 2025) are as follows......

[SMM Weekly Survey on Aluminum Downstream: High Aluminum Prices, Coupled with Weak Demand During Off-Season, Continue to Weigh on Weekly Operating Rate of Aluminum Processing] As June arrives, the overall off-season atmosphere in the downstream aluminum processing sector is strong, with the weekly operating rate declining by 0.4 percentage points WoW to 60.9%...

[SMM Weekly Review of Aluminum Prices: Strong Support and Pressure Points Coexist, SHFE Aluminum to Maintain Volatile Consolidation in the Short Term]