China's Secondary Aluminum Ingot Inventory Drops by 640 mt, Driven by Foshan Destocking

According to data from the General Administration of Customs, exports of unwrought aluminum and aluminum semis reached 632,000 mt in May 2026, up 15.5% YoY from 547,000 mt in the same month last year and up 5.7% MoM from 598,000 mt in April. Additionally, cumulative exports in the first five months of this year reached 2.686 million mt, up 10.5% from 2.43 million mt in the same period last year.

[Middle East Situation Calms Temporarily, Aluminum Prices Fluctuate and Adjust at Highs] Amid geopolitical risks in the Middle East, a wait-and-see sentiment in the market is expected to persist. The overseas supply gap is expected to provide strong underlying support for aluminum prices, while expectations of rising energy costs also serve as a bullish driver for aluminum prices. However, high inventory pressure in China remains relatively evident, which is expected to cap the upside room for domestic aluminum prices. In the short term, China's aluminum prices are expected to primarily fluctuate and adjust.

[SMM Cast Aluminum Alloy Morning Comment: Overnight cast aluminum bottomed out, traded narrowly, with declining volume and insufficient upward momentum] Overnight, the cast aluminum alloy 2608 contract opened at 23,065 yuan/mt, dipped to a low of 22,915 yuan/mt during the session, and closed at 229,995 yuan/mt, edging up 10 yuan/mt or 0.04%.