June 27 News: According to SMM statistics, on June 27, the inventory of aluminum ingots in Guangdong was 149,000 mt; in Wuxi, it was 102,000 mt; and in Gongyi, it was 63,000 mt. The total inventory across these three locations was 318,000 mt, a decrease of 4,000 mt from the previous trading day.

[SMM Weekly Survey on Aluminum Downstream: Double Pressure from Off-Season and High Aluminum Prices Leads to Continuous Decline in Weekly Operating Rate of Aluminum Processing] This week, the overall off-season atmosphere was strong in the downstream aluminum processing sector, with the weekly operating rate declining by 1 percentage point WoW to 58.8%. ...

[SMM Aluminum Morning Meeting Summary: Domestic Consumption Boosting Policies Intensified, Aluminum Prices Face Short-Term Upside Test] On the macro front, domestic policies have been intensified to boost demand, and the issuance of trade-in funds is conducive to driving the resilience of aluminum consumption. Overseas, if the EU reduces tariffs on US goods to reach a trade agreement, it may alleviate trade conflicts, reduce the risk of supply chain disruptions, and indirectly support aluminum prices. Demand side, downstream industries have entered the traditional off-season, with operating rates for aluminum wire and cable, extrusions, etc., declining significantly. Aluminum processing enterprises in central China have entered a semi-shutdown state due to losses, with low purchase willingness and spot prices remaining at lows. Despite the strong resilience of demand in the new energy sector (such as PV and automotive), PV installation rush demand weakened after June, and home appliance production schedules declined sharply MoM, resulting in insufficient overall demand support. Inventory side, SMM domestic aluminum ingot inventory slightly declined by 1,000 mt to 463,000 mt on June 26, with initial signs of inventory buildup pressure. As the off-season deepens and casting ingot volumes increase, inventory begins to face certain pressure. Overall, aluminum prices will face tests from inventory turning point confirmation and off-season demand pressure in the coming week, hovering at highs in the short term.

Details of the hot topics in the aluminum market this week (June 23-26, 2025) are as follows......

[SMM Morning Comment on Cast Aluminum Alloy: Futures Market of Cast Aluminum Alloy Rose Overnight, Social Inventory Maintained Inventory Buildup Trend] The tug-of-war between cost support and weak demand during the off-season persisted throughout the week. After a decrease of 50-100 yuan/mt, the price of ADC12 temporarily stabilized. However, the impact of low-priced goods intensified market competition. In the short term, cost support is expected to persist, but it will face pressure from the deepening off-season and inventory accumulation. The price of ADC12 is expected to maintain a fluctuating trend in the short term. Close attention should be paid to marginal changes in raw material circulation and signs of improvement in demand.

[Weekly Review of Aluminum Scrap and Secondary Aluminum: Under the Dominance of Off-Season, Aluminum Scrap Prices Show Significant Differentiation at High Levels, While Secondary Aluminum Alloy Faces Inventory Buildup Pressure amid Weak Market Conditions] Overall, the ongoing tug-of-war between cost support and weak off-season demand persisted. After a 50-100 yuan/mt decrease in ADC12 prices during the week, prices stabilized temporarily, but the influx of low-priced goods intensified market competition. Looking ahead, with the deepening impact of the off-season and inventory accumulation, ADC12 prices are expected to remain in the doldrums in the short term. Close attention should be paid to marginal changes in raw material circulation and signs of improvement in demand.

[SMM Weekly Aluminum Price Review: Can Short-Term Fluctuations in Aluminum Prices Break Through Inventory Pressure Amid Geopolitical Easing and Policy Games?]