China's Secondary Aluminum Alloy Inventory Falls for 5th Week, Supply Tightness Continues

[SMM Aluminum Express News] EGA has restarted 89 of its 1,262 reduction cells at the Al Taweelah smelter since the first cell resumed operations on 26 May, with full ramp-up expected to take up to one year. Anode removal is complete, bath cleaning is around 90% finished, and more than 20% of frozen metal has been removed. The Al Taweelah casthouse resumed casting on 4 May, initially remelting recovered frozen metal before processing hot metal from restarted cells. The recycling plant restarted commissioning in April and is targeting full ramp-up within six months, while the alumina refinery is expected to resume production in early Q3. Jebel Ali continues operating at full capacity, and EGA has established alternative export routes outside the Strait of Hormuz while maintaining uninterrupted recycling operations in the US and Germany.

[SMM Aluminum Alloy Daily Review] Today, ADC12 market quotations showed an overall upward trend, with the SMM ADC12 price rising by 100 yuan/mt from the previous day to 23,800 yuan/mt. Market sentiment recovered somewhat, and enterprises’ willingness to follow the price increase strengthened significantly. Meanwhile, procurement costs of aluminum scrap remained at a relatively high level, with the cost side continuing to support ADC12 prices, prompting enterprises to actively push up their quotations. However, from the demand side, the improvement in downstream procurement sentiment was limited, end-user orders remained mediocre, and market transactions were dominated by just-in-time procurement. The actual transaction situation after the price increase still needs further verification.