AlCircle: Latest primaryaluminium news update

Macro headwinds persist while peak season expectations rise; aluminium prices consolidate at highs on inventory support

Fri, 28 Aug 2026 05:50:00 +0530

Futures: The most-traded SHFE aluminium 2610 contract closed at RMB 23,960 per tonne, up RMB 125 from yesterday’s settlement price, a gain of 0.52 per cent. It opened at RMB 23,850 per tonne and fluctuated within the range of RMB 23,840–23,965 per tonne. Prices traded above the MA5 (23,812.00), MA10 (23,803.00), MA30 (23,694.00), and MA60 (23,582.00) moving averages. The medium and long-term moving averages remained in a bearish alignment and continued to press lower overall.

The drift-higher structure persisted, with the upper high-price range forming key resistance. For the MACD indicator, DIF (68.1622) was below DEA (89.6494), and the MACD green histogram stood at -42.9745, indicating that bearish momentum had eased somewhat. The suggested core trading range for SHFE aluminium was RMB 23,400–24,100 per tonne.

The LME aluminium 3M contract closed at USD 3,233 per tonne, up 0.28 per cent. It opened at USD 3,225 per tonne and fluctuated within the range of USD 3,225.00–USD 3,234 per tonne. Prices traded above the MA5 (3,228.60), MA10 (3,228.60), and MA30 (3,224.62), but below the MA60 (3,243.45). The medium and long-term moving averages were in a bearish alignment and gradually pressed lower.

An overall consolidating repair structure emerged, with the 60-day daily average above forming clear resistance. For the MACD indicator, DIF (-0.6764) was below DEA (1.9718), and the MACD green histogram was -5.2964, indicating that bullish momentum had weakened somewhat, with consolidation and adjustment at lows. The suggested core trading range for LME aluminium was USD 3,150–USD 3,280 per tonne.

Macro front: People familiar with the matter revealed that the Trump administration had repeatedly told mediators that it had no intention of returning to the terms of the memorandum of understanding reached between the US and Iran in June, adding major obstacles to intensive mediation efforts to restart the diplomatic process this week.

Rezai, Secretary of Iran’s Supreme National Security Council, said Iran had prepared a list of conditions to present to the US. At present, vessels had been allowed to temporarily pass through specific channels in the middle of the Strait of Hormuz, but future passage through the strait would be subject to a memorandum of understanding signed with the US.

Rezai, Secretary of Iran’s Supreme National Security Council, said during a meeting with Qatar’s Prime Minister and Foreign Minister Mohammed that Iran did not trust the US because it had repeatedly reneged on diplomacy and negotiations.

The US must first take concrete measures to meet Iran’s conditions, and only then would Iran open the Strait of Hormuz. Cleveland Fed President Hammack reiterated that policymakers should take action now to curb inflation. She added that current interest rates were not enough to cause price pressures to pull back on their own.

At last month’s policy meeting, three officials cast dissenting votes, including Hammack, who advocated a 25-basis-point rate hike. Policymakers ultimately kept the benchmark interest rate unchanged for the fifth consecutive time.

Fundamentals: Markets outside China: Overseas aluminium production resumptions and new capacity continued to ramp up as planned, and damaged capacity in the Middle East was gradually recovering. The market’s expectations that the global aluminium market would shift from tightness to looseness in the longer term persisted, continuously capping upside room for aluminium prices.

However, current LME visible inventory remained at a historically low level of around 250,000 tonnes, and low inventory provided bottom support for LME aluminium. As oil prices pulled back, overseas smelting energy costs edged down on the margin, weakening cost support for aluminium prices. Spot premiums improved only limitedly, and bulls lacked sufficient momentum to keep pushing higher.

China market: On the inventory side, China’s aluminium social inventory continued to destock, falling to the 852,000 tonnes threshold, showing counter-seasonal destocking and providing strong support for aluminium prices. On the demand side, downstream processing enterprises’ operating rate stayed at a neutral level.

With the traditional “September peak season” approaching, the market had expectations for subsequent demand improvement, but downstream front-loaded restocking was limited and participants were still watching for actual peak-season demand to materialize; spot transactions were mainly driven by rigid demand.

Primary aluminium market: Today, the SHFE aluminium 2609 contract’s futures centre moved higher than yesterday, while today’s buying and selling sentiment improved somewhat from yesterday. Spot premiums for SHFE aluminium transactions were flat from yesterday, with today’s main deals at a discount of RMB 20 per tonne to on par with the SHFE aluminium 09 contract. Today, aluminium futures rose for consecutive sessions.

Against the backdrop of elevated aluminium prices, downstream processing enterprises in the central China market showed low buying sentiment, mainly delaying purchases to reduce in-factory inventory. With both premiums and absolute prices staying high, suppliers actively sold, with no clear willingness to hold prices firm, and market prices saw a collapse-style drop. Ultimately, actual transaction prices in the central China market were around a discount of RMB 80-120 per tonne against the SHFE aluminium 09 contract.

Today, aluminium prices edged up, while the spot market was under pressure and weakened. Although inventory continued to decline, the inter-regional arbitrage window opened and northern cargoes were already en route; expectations for arrivals turned marginally more bullish. In addition, under the month-end cash-out demand amid a dual-high pattern of absolute prices and the spot-futures price spread, suppliers increased the pace of price cuts to sell, with offers gradually moving lower and circulation clearly loosening.

Facing high aluminium prices, downstream buyers only maintained the minimum level of rigid demand, with limited purchase willingness; traders were also clearly wary of high prices and had no intention to actively take positions, only buying low-discount cargoes as needed, and overall transactions were poor. Spot transaction prices were concentrated at a premium of RMB 200-240 per tonne against the SHFE aluminium 2609 contract.

Secondary aluminium raw material: Today, SMM A00 spot aluminium prices closed at RMB 23,920 per tonne, up RMB 50 per tonne M-o-M from the previous trading day, while prices in China’s aluminium scrap market were overall steady.

In terms of the price difference between A00 aluminium and aluminium scrap, as of August 27, the price difference between A00 aluminium and mixed aluminium extrusion scrap free of paint in Foshan was about RMB 2,394 per tonne, and the price difference between A00 aluminium and shredded aluminium tense scrap was about RMB 1,173 per tonne, steady W-o-W.

Against the backdrop of a continued rebound in primary aluminium prices, aluminium scrap saw relatively limited fluctuations, and the price transmission mechanism was impeded, mainly constrained by two factors: first, with the traditional peak season about to arrive, downstream demand for secondary aluminium alloy showed no obvious improvement; second, inventories of wrought aluminium alloy scrap raw materials such as doors and windows in Henan and other regions remained high, weakening the upside elasticity of aluminium scrap prices.

In addition, on the supply side, constraints from the “reverse invoicing” policy continued, and the scarcity of compliant, invoiced aluminium scrap provided a floor support for aluminium scrap prices. On the import side, this week the imported shredded aluminium zorba price at Ningbo port was lowered from RMB 21,670 per tonne to RMB 21,370 per tonne (tax included), and at Tianjin port from RMB 21,720 per tonne to RMB 21,420 per tonne (tax included). Recently, the import window improved compared with earlier, traders’ inquiries and purchasing enthusiasm increased, and import supply rose somewhat.

In the short term, as the market is currently at the tail end of the traditional off-season, downstream scrap utilisation enterprises have yet to see a clear recovery in orders, the pre-positioning effect ahead of the peak season is not significant, and scrap utilization enterprises continued to purchase as needed and maintain a low-inventory strategy, with limited acceptance of price increases; some enterprises chose to stay temporarily stable and wait on the sidelines after following the earlier price rise.

On the import side, previously traded cargoes arriving at ports in succession provided some supply replenishment, but the deeper effects of the UAE ban and the EU’s tariff hikes will still limit the ramp-up of high-quality scrap imports.

Secondary aluminium alloy: Spot: Today, overall ADC12 market quotes remained stable, and the SMM ADC12 price held steady at RMB 23,950 per tonne from the previous trading day. Both aluminium prices and futures fluctuated only slightly, with no obvious changes in cost support or demand-side performance; enterprises showed weak willingness to adjust prices, and most producers chose to stay temporarily stable and wait on the sidelines.

End-use demand is still relatively weak, with downstream purchasing mainly driven by rigid demand, and overall market transactions saw limited improvement; meanwhile, raw material costs such as aluminium scrap stayed at a relatively high level, providing some support to ADC12 prices. With no clear changes on either the supply or demand side, ADC12 prices are expected to continue to move sideways in the short term, and market attention remains focused on further fluctuations in aluminium prices and whether end-use demand can see marginal improvement going forward. On the import side, ex-China ADC12 offers temporarily held steady at USD 3,050-3,190 per tonne, and the immediate import loss remained slightly around RMB 900 per tonne.

Overall outlook: Overall, macro front pressure on aluminium prices has strengthened recently. The Jackson Hole annual meeting and Walsh’s debut brought policy uncertainty; the strengthening US dollar index, together with rising expectations of rate hikes, as well as the fading risk premium from US-Iran geopolitical risks and the pullback in oil prices, jointly formed resistance for aluminium prices. However, continued destocking of China inventory and the approaching expectations for the “September peak season” provided strong support on the downside. With bullish and bearish factors intertwined, aluminium prices are expected to continue to consolidate at highs.

Note: This article has been issued by SMM and has been published by AL Circle with its original information without any modifications or edits to the core subject/data.

LME aluminium price pulls back to $3,212.5/t while opening stocks remain stable

Fri, 28 Aug 2026 05:15:00 +0530

The London Metal Exchange (LME) aluminium price chart declined on the August 27 trading session across the pricing and contract segments compared to the August 26 close. Meanwhile, the Asian Reference Price surged, and the inventories held steady.

The LME aluminium cash bid and offer prices plunged 0.46 per cent day-on-day on August 27. The bid dipped from USD 3,227 per tonne to USD 3,212 per tonne, and the offer shifted from USD 3,227.5 per tonne to USD 3,212.5 per tonne.

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On August 27, the LME aluminium three-month bid and offer prices reported a 0.71 per cent decline over the August 26 session. The bid moved from USD 3,238 per tonne to USD 3,215 per tonne as the offer price slipped from USD 3,239 per tonne to USD 3,216 per tonne.

The downward trend continued in the longer-dated contracts, with both the December 27 bid and offer prices reporting a 0.67 per cent drop over the previous session. The bid contracted to USD 3,128 per tonne from USD 3,143 per tonne, and the offer slumped from USD 3,148 per tonne to USD 3,133 per tonne.

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The LME aluminium three-month Asian Reference Price surged 0.29 per cent from USD 3,225 per tonne on August 26 to USD 3,234.5 on August 27.

On the inventory front, the LME aluminium opening stocks remained stable at 246,825 tonnes.

Live warrants showed no change from the 243,425 tonnes as reported in August 26. Similarly, cancelled warrants remained unchanged at 3,400 tonnes.

LME alumina Platts closed at USD 353.37 per tonne on August 27.

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Aluminum Association backs ‘all-of-the-above’ supply approach after Trump says US ‘desperately needs aluminum’

Thu, 27 Aug 2026 19:10:00 +0530

The Aluminum Association has responded to President Donald Trump’s recent remarks that the United States “desperately needs aluminium,” with its President and CEO Charles Johnson calling for an “all-of-the-above” approach that expands both primary and recycled aluminium production while maintaining access to imported metal from reliable trading partners.

Johnson said Trump was right about the need for aluminium in the US but argued that domestic production alone cannot meet current demand. “We need to build both primary and secondary capacity — coupled with smart, targeted trade enforcement — to win the future,” he said.

The comments followed Trump’s remarks during a telephone rally for Oklahoma Republican gubernatorial candidate Mike Mazzei. There he stated, “Selfishly, we need aluminium in this country. We don’t have it. We get it all from Canada for the most part, and we need it badly.”

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Trump also promoted a proposed aluminium plant in Inola, Oklahoma, saying the country needed additional domestic capacity. His observations come as the US and Canada remain involved in escalating trade tensions, with 50 per cent metals tariffs becoming a major point of tension. Recent reporting has also highlighted the importance of Canadian aluminium to US supply chains.

Johnson said the US should increase both primary aluminium capacity and secondary aluminium production through recycling. He further added, “US demand remains strong, and until we bring more domestic capacity online, which will take years, we have no alternative than to import primary metal.”

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He mentioned that stronger secondary aluminium production could also help support demand, pointing to a record number of US aluminium recycling jobs reported by the industry in 2026.

The comments come against the backdrop of the latest US-Canada trade disagreement. Canada recently announced that it would raise its counter-tariffs on US aluminium and steel products to 50 per cent, with the measures forming part of a wider retaliatory package covering around USD 20 billion of annual US imports.

The new Canadian duties are set to take effect on September 8, while Ottawa has also announced a CAD 7.5 billion (USD 5.4 billion) support package for businesses affected by the trade tensions.

China aluminium profile trade shifts in July: Nigeria shipments jump 1,614 per cent, US imports slump 31.6 per cent

Fri, 28 Aug 2026 03:00:00 +0530

According to the latest data from the General Administration of Customs of the People's Republic of China (GACC), China's aluminium profile imports in July reached 2,467.211 tonnes, up 21.55 per cent month-on-month (M-o-M) and down 4.92 per cent year-on-year (Y-o-Y). In terms of import origins, China's aluminium profile imports in July were still mainly sourced from Taiwan (China), the United States, Japan and South Korea. Taiwan (China) ranked first with imports of 1,163.617 tonnes, accounting for 47.16 per cent of total imports and increasing by 44.24 per cent M-o-M.

The United States ranked second with imports of 332.53 tonnes, representing 13.48 per cent of total imports and declining by 31.57 per cent M-o-M. Japan ranked third with imports of 322.687 tonnes, making up 13.08 per cent of total imports and rising by 12.88 per cent M-o-M. According to the latest data from the customs, China's aluminium profile exports in July stood at 89,766.384 tonnes, down 2.36 per cent M-o-M and up 6.63 per cent Y-o-Y.

In terms of provincial export volume, China's aluminium profile exports in July mainly originated from Guangdong, Shandong, Fujian and Jiangsu. Guangdong exported 38,294.068 tonnes of aluminium profiles, accounting for 42.66 per cent of total exports and decreasing by 4.05 per cent M-o-M. Shandong ranked second with exports of 12,262.21 tonnes, representing 13.66 per cent of total exports and falling by 11.91 per cent M-o-M. Fujian exported 12,221.39 tonnes, accounting for 13.61 per cent of total exports. Jiangsu exported 4,408.24 tonnes, making up 4.91 per cent of total exports and dropping by 14.66 per cent M-o-M.

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In terms of export destinations, China's aluminium profiles in July were mainly exported to Nigeria, Malaysia, Vietnam and Israel. Nigeria was the largest export market with 7,745.23 tonnes, accounting for 8.63 per cent of total exports and surging by 1,614 per cent M-o-M. Malaysia ranked second with exports of 7,608.15 tonnes, representing 8.48 per cent of total exports and edging down by 1.49 per cent M-o-M. Vietnam ranked third with exports of 5,594.03 tonnes, accounting for 6.23 per cent of total exports and declining by 19.03 per cent M-o-M. Exports to Israel reached 5,241.67 tonnes, making up 5.84 per cent of total exports and increasing by 10.82 per cent M-o-M.

Overall, China's aluminium profile foreign trade in July presented a pattern of "mild rebound in imports and high-level M-o-M decline in exports". The absolute import volume of merely 2,467 tonnes accounted for only about 2.75 per cent of monthly exports, exerting no material impact on domestic supply and demand.

Imports remained supplementary purchases dominated by high-end precision profiles and electronic & auto parts supporting materials. Taiwan (China) topped the list with a 44.24 per cent M-o-M increase, which contrasts sharply with the 31.57 per cent M-o-M decline of imports from the United States. The latter was dragged down by the US Section 232 tariffs (50 per cent on primary aluminium products and 25 per cent on deep-processed products) and tightened trans-shipment inspections. The import structure continued to tilt toward high-tech materials from East Asia.

Exports reached 89,800 tonnes. The 6.63 per cent YoY growth reflected the low base effect and lingering overseas restocking demand. The M-o-M declines in exports from Guangdong, Shandong and Jiangsu indicated that the traditional off-season (high-temperature shutdowns and weak real estate sector) had spread to both domestic and foreign trade orders.

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Regarding export destinations, Nigeria's 1,614 per cent M-o-M surge was driven by a low base and the release of rigid demand from African infrastructure construction and window and door replacement. Malaysia maintained its leading position. Vietnam's 19.03 per cent M-o-M drop was attributed to the sluggish local real estate sector and saturated competition from Chinese profiles. Israel's 10.82 per cent M-o-M increase benefited from Middle East reconstruction and demand for photovoltaic mounting structures.

Note: This news is published under a content and exchange agreement with Mysteel

From aluminium to semiconductors, Piyush Goyal pitches India to Japanese industry

Thu, 27 Aug 2026 09:50:00 +0530

Union Commerce and Industry Minister Piyush Goyal has met senior executives from Japanese companies in Osaka, pitching India as an investment and manufacturing partner across semiconductors, electronics, aluminium, paints and coatings, and sports goods.

The meetings formed part of Goyal’s four-day Japan visit, where he led India’s largest-ever business delegation to the country. The trip focused on encouraging Japanese companies to expand manufacturing, technology partnerships and supply-chain investments in India.

Focus on electronics and aluminium

Goyal met a delegation led by Katsumi Azuma, president and chief executive of ROHM Co. Ltd., to discuss potential cooperation in semiconductor and electronic-components manufacturing.

India has been developing its semiconductor and electronics manufacturing ecosystem through domestic production incentives, growing consumer demand and a broader push to build resilient supply chains. Goyal said the sector offered scope for deeper collaboration and investment with Japanese companies. "India's expanding electronics ecosystem offers significant scope for greater collaboration and investment," the Minister stated.

The minister also met Takaaki Yamamoto, chairman of Daiki Aluminium, to discuss the company’s presence in India and opportunities for further cooperation in aluminium manufacturing and associated industries. The talks highlighted India’s expanding industrial base and demand growth as potential drivers for investment. "Discussed the company's engagement in India and opportunities to deepen collaboration in aluminium manufacturing and allied industries by leveraging India's growing manufacturing ecosystem and rising demand," he said.

To know the production, demand and consumption forecasts on bauxite and alumina, explore the report "Global Bauxite & Alumina Market Forecast to 2036: Supply–Demand, Trade Flows & Price Outlook"

Paints, coatings and sports goods

In a separate meeting, Goyal met Yuichiro Wakatsuki, director, representative executive officer and co-president of Nippon Paint Holdings. The discussion focused on expanding India-Japan cooperation in paints and coatings, a sector linked to construction, infrastructure, automotive production and industrial manufacturing.

He also met Akito Mizuno, representative director and president of Mizuno Corporation, to explore investment and collaboration in sports gear, sportswear and footwear. Goyal said greater Japanese participation could support innovation and improve the global competitiveness of India’s sports manufacturing industry.

"Discussed opportunities for investment and greater collaboration in India across sports gear, sportswear and footwear segments, with a focus on driving innovation & enhancing the global competitiveness of India's sports industry," he explained.

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Wider trade and investment agenda

The Osaka meetings concluded Goyal’s August 24-27 visit to Japan, which included a 200-plus-member Indian business delegation and engagements in Tokyo, Nagoya and Osaka. The itinerary covered sectors including manufacturing, semiconductors, clean energy, automotive, steel, financial services, healthcare and start-ups.

India and Japan recorded bilateral trade of USD 27.47 billion in FY 2025–26, up 9.18 per cent from USD 25.16 billion in the previous financial year. India imported USD 21.43 billion in goods from Japan and exported USD 6.04 billion, leaving a substantial trade deficit that New Delhi hopes to narrow through greater investment, domestic manufacturing and exports.

What to watch

The Osaka meetings do not amount to announced investments or binding commercial agreements. Their immediate importance lies in targeted engagement with companies in sectors where India is seeking technology, capital and manufacturing capacity.

Any subsequent investment commitments—particularly in semiconductors, electronic components, aluminium processing or advanced manufacturing—would indicate whether the visit translates from investment outreach into concrete projects.

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South32 aluminium FY2026: Hillside delivers, Brazil recovers, Worsley takes price hit

Thu, 27 Aug 2026 09:30:00 +0530

South32 delivered a stronger FY26 financial performance, with underlying revenue rising 7 per cent to USD 8.11 billion, reinforced by higher commodity prices and stronger operating performance. Within its aluminium portfolio, Brazil Aluminium and Hillside Aluminium recorded significant earnings improvements. The year also marked a strategic turning point, with South32 agreeing to sell most of its aluminium value chain assets to Alcoa for up to USD 5.6 billion.

CEO Matt Daley stated, “Strong operating performance coupled with commodity price tailwinds underpinned one of the best financial results in our history, with Group Underlying EBITDA increasing by 28 per cent to USD 2.5 billion and Underlying earnings increasing by 55 per cent to USD billion.”

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Group earnings: FY26 vs FY25

Profit after tax attributable to members – USD 1.09 billion vs USD 213 million, up 410 per cent Y-o-Y

Underlying revenue – USD 8.11 billion vs USD 7.61 billion, up 7 per cent Y-o-Y

Underlying EBITDA – USD 2.46 billion vs USD 1.93 billion, up 28 per cent Y-o-Y

Underlying earnings attributable to members – USD 1.03 billion vs USD 666 million, up 55 per cent Y-o-Y

The aluminium value chain produced a mixed picture. Higher aluminium prices contributed USD 435 million to the Group’s result, but this was more than offset by a USD 504 million negative impact from lower alumina prices.

For the aluminium value chain itself, saleable aluminium production declined 8 per cent to 1.11 million tonnes, as Mozal Aluminium moved into care and maintenance. Alumina production, however, remained broadly stable at 5.1 million tonnes.

Worsley Alumina (86 per cent share)

Worsley Alumina, produced 3.72 million tonnes of alumina in FY26, almost unchanged from 3.73 million tonnes in FY25.

Operationally, the asset benefited from improved bauxite availability. The gain was hampered by a temporary, weather-related disruption to third-party gas supply during Q3 FY26.

The financial picture was considerably weaker. Worsley’s underlying revenue fell from USD 1.92 billion in FY25 to USD 1.32 billion in FY26, while underlying EBIT dropped sharply from USD 619 million to USD 5 million.

The key issue was the weaker alumina pricing environment. Across South32’s alumina business, the average realised alumina price declined 32 per cent. Thus, the underlying EBITDA declined to USD 210 million.

For FY27, South32 has allocated USD 85 million of safe-and-reliable capital expenditure to Worsley Alumina, alongside USD 75 million for improvement and life-extension work. The latter includes the Worsley Mine Development Project, including the Nullaga mine development.

Brazil Alumina (36 per cent share, non-operated)

Brazil Alumina produced a record 1.41 million tonnes in FY26, up 5 per cent, from 1.36 million tonnes in FY25. The refinery operated above nameplate capacity, supported by improved plant availability.

Yet the improvement in output did not translate into higher earnings. Underlying revenue declined from USD 749 million to USD 502 million, while underlying EBIT moved from a USD 226 million profit to a USD 27 million loss.

The contrast highlights the extent to which commodity prices influenced FY26 performance: Brazil Alumina produced more metal and operated efficiently, but the weaker alumina price environment outweighed the operational gains.

Brazil Aluminium (40 per cent share, non-operated)

Brazil Aluminium delivered a notably different result. South32’s 40 per cent share of the non-operated smelter produced 144,000 tonnes in FY26, up 4 per cent, or 6,000 tonnes, from 138,000 tonnes in FY25. Production exceeded revised guidance by 7 per cent.

The smelter continued ramping up all three potlines, helping Q4 production rise 12 per cent to 37,000 tonnes from 33,000 tonnes in Q3.

Sales rose 4 per cent to 143,000 tonnes for FY26, with Q4 sales jumping 56 per cent because of the timing of export shipments.

Underlying revenue increased from USD 355 million to USD 441 million, while underlying EBIT swung from a USD 97 million loss in FY25 to a USD 20 million profit in FY26.

South32 attributed the broader aluminium portfolio’s earnings improvement to a 19 per cent increase in the average realised aluminium price, alongside lower alumina input prices at Brazil Aluminium and Hillside Aluminium.

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Hillside Aluminium (100 per cent share)

Hillside Aluminium remained South32’s largest aluminium-producing asset, with 717,000 tonnes of saleable aluminium production in FY26, broadly unchanged from 718,000 tonnes in FY25. The smelter continued testing its maximum technical capacity despite the impact of load-shedding.

Sales were weaker, falling 6 per cent to 688,000 tonnes from 732,000 tonnes. Q4 sales nevertheless increased 10 per cent to 174,000 tonnes, largely because of a carry-over shipment from the previous quarter.

The financial performance was much stronger than the production numbers suggest. Underlying revenue increased from USD 1.989 billion to USD 2.236 billion, while underlying EBIT surged from USD 85 million to USD 581 million.

This makes Hillside the standout earnings contributor among the aluminium assets covered in the report. Its result benefited from the stronger aluminium price environment and lower alumina input prices, even though production remained essentially flat.

Mozal Aluminium (63.7 per cent share)

Mozal Aluminium produced 248,000 tonnes in FY26, compared with 355,000 tonnes in FY25, a 30 per cent decline. Production covered the period through March 2026, when the smelter was placed on care and maintenance, owing to power deal deadlock.

Sales declined 22 per cent to 275,000 tonnes, although the operation still sold 46,000 tonnes in Q4 as remaining finished-goods inventories were cleared.

Despite the production shutdown, Mozal generated USD 890 million in underlying revenue and USD 182 million in underlying EBIT in FY26, compared with USD 979 million and USD 55 million respectively in FY25.

Aluminium portfolio: Stronger prices, sharply different asset outcomes

South32’s aluminium portfolio delivered stronger earnings despite an 8 per cent decline in saleable aluminium production to 1.109 million tonnes, as higher aluminium prices and lower input costs lifted underlying EBITDA by USD 678 million to USD 865 million. Hillside Aluminium and Brazil Aluminium were the main positive contributors, while weaker alumina prices weighed heavily on Worsley Alumina and Brazil Alumina.

Even Mozal’s earnings remained significant despite the production shutdown, but its future contribution is structurally different now that the smelter is on care and maintenance.

FY27 outlook: Preparing for a reshaped aluminium portfolio

South32 has guided to USD 300 million of FY27 capital expenditure for its Aluminium Value Chain Assets, up from USD 272 million in FY26. Safe-and-reliable spending is expected to rise to USD 225 million, while improvement and life-extension expenditure is planned at USD 75 million.

Worsley Alumina is expected to produce 3.9 million tonnes, Brazil Alumina 1.36 million tonnes, Brazil Aluminium 140,000 tonnes and Hillside Aluminium 720,000 tonnes.

South32 has also announced the sale of its aluminium value-chain assets, excluding Mozal Aluminium, to Alcoa Corporation.

On July 1, 2026, South32 announced a binding conditional agreement to sell its interests in Worsley Alumina, Hillside Aluminium, Brazil Alumina and Brazil Aluminium, together with its interest in the MRN bauxite mine, to Alcoa for an implied enterprise value of up to USD 5.6 billion. Alcoa will also assume approximately USD 1.1 billion in rehabilitation provisions.

South32’s aluminium value chain is therefore entering FY2027 from a position of strong smelting economics but uneven upstream performance. The planned Alcoa transaction will ultimately remove most of these assets from South32’s portfolio, with the Group increasingly focused on base metals and growth projects such as Hermosa and Sierra Gorda.

As Daley noted, “Looking ahead, our focus on operational excellence, a strong balance sheet and transformational growth in base metals leaves us well positioned to deliver value for shareholders.”

Unlock key insights from leading companies and experts across the aluminium ecosystem with our e-Magazine - Mine to Market: ALuminium Producers & Manufacturers 2026

Aluminium ingot continuous destocking provides a floor; Strait of Hormuz situation disturbs aluminium market sentiment

Thu, 27 Aug 2026 05:40:00 +0530

Futures: The most-traded SHFE aluminium 2610 contract closed at RMB 23,830 per tonne, down RMB 40 from the previous settlement, a decline of 0.17 per cent. It opened at RMB 23,760 per tonne and fluctuated within the range of RMB 23,710–23,870 per tonne during the session. Prices traded above MA5 (23,764.00), MA10 (23,796.50), MA30 (23,669.17), and MA60 (23,590.50).

Medium and long-term moving averages remained in a bearish alignment and continued to press lower; a rebound that met resistance and pulled back became evident, with the 10-day moving average above forming key resistance. The MACD indicator showed DIF (60.7360) below DEA (95.1808), with the MACD green histogram at -68.8896, indicating some weakening in bullish momentum. The suggested core trading range for SHFE aluminium was RMB 23,400–24,200 per tonne.

The LME aluminium 3M contract closed at USD 3,225 per tonne, down 0.14 per cent. It opened at USD 3,230.50 per tonne and fluctuated within the range of USD 3,223.50–USD 3,233.50 per tonne during the session. Prices traded above MA5 (3,230.70), MA10 (3,229.90), and MA30 (3,222.43), but below MA60 (3,249.64).

Medium and long-term moving averages were in a bearish alignment and gradually pressed lower; an overall retreat-from-highs consolidation and correction structure became evident, with the 60-day moving average above forming clear resistance. The MACD indicator showed DIF (-0.5481) below DEA (2.6498), with the MACD green histogram at -6.3958, indicating some weakening in bullish momentum. The suggested core trading range for LME aluminium was USD 3,200–USD 3,300 per tonne.

Macro front: The State Council Information Office held a press conference at which MIIT introduced relevant information on promoting new-type industrialisation during the “15th Five-Year Plan” period. MIIT stated that over the next five years it will accelerate the development of emerging pillar industries such as integrated circuits, aerospace, biopharmaceuticals, the low-altitude economy, new-type energy storage, and intelligent robots, and promote future industries such as quantum technology, bio-manufacturing, hydrogen energy and nuclear fusion energy, brain–computer interfaces, embodied AI, and sixth-generation mobile communications (6G) to become new drivers of economic growth.

US President Trump said that regarding when Iran was expected to return to negotiations, he had no timetable and was not in a hurry. Trump said the US was achieving very big victories, and Iran was facing severe inflation and its economy was collapsing. A spokesperson for Iran’s Islamic Revolutionary Guard Corps said the Strait of Hormuz belonged to Iran and Oman.

About a month ago, Iran and Oman began negotiations and reached an agreement acceptable to both sides. In these negotiations, all parties had reached an agreement on the share of waters in the Strait of Hormuz and the respective shares of revenue that Iran and Oman should receive.

The US obstructed this work, causing delays in the process. If the US abandoned its obstruction and resumed mutual understanding, Iran could open the Strait of Hormuz within the framework of the understandings already reached; therefore, the US must accept Iran’s conditions. If the US does not accept Iran's conditions, the Strait of Hormuz will not be open under any circumstances.

Fundamentals: Overseas, driven by new capacity and production resumptions, daily average production is expected to continue to rebound; US-Iran negotiations remain volatile, and the prospects for the reopening of the Strait of Hormuz remain uncertain.

Demand side, although the traditional peak season period is about to arrive, expectations of peak season stockpiling have yet to materialise, and the market holds a wait-and-see attitude towards peak season demand improvement. Inventory side, the destocking trend of aluminium ingot social inventory continued during the week. As of Thursday, aluminium ingot inventory in mainstream consumption areas in China stood at 852,000 tonnes, down 8,000 tonnes from Monday and down 23,000 tonnes W-o-W.

Primary aluminium market: SHFE aluminium futures rose today, with overall transaction sentiment declining somewhat. SHFE aluminium spot transactions for cargoes with invoices dated this month ranged from a discount of RMB 10 per tonne to a premium of RMB 10 per tonne, while those with invoices dated next month ranged from a discount of RMB 20 per tonne to parity.

The night session saw a slight increase, and as it was the first day of trading for next-month invoices, buying sentiment in the central China market was low. The overall trading atmosphere was subdued, with only a few downstream processing enterprises making just-in-time procurement. Suppliers rushed to sell amid a price collapse, driving transaction prices lower. Ultimately, the actual transaction price range in central China centred around a discount of RMB 80-120 per tonne against the SHFE aluminium September contract.

Today's sharp increase in futures led to bullish-bearish divergence in the spot market in southern China. Tightening arrivals coupled with significant destocking gave sellers greater confidence, and the majority of suppliers held prices firm and sold slowly. Only some were pressured by month-end cash needs to make small concessions, and overall cargo flow remained under control without significant volume release.

On the demand side, downstream users showed low acceptance of the rapid price increase, not only unwilling to chase prices but also developing bearish sentiment, becoming cautious and purchasing less.

Fortunately, traders maintained relatively strong just-in-time procurement, and large players actively raised prices to purchase, boosting activity among intermediaries. Amidst the tug-of-war between sellers and buyers, trading was tepid. Spot transaction prices were concentrated at premiums of RMB 210-250 per tonne against the SHFE aluminium September 2609 contract.

Aluminium scrap: Today, the SMM A00 spot aluminium price closed at RMB 23,870 per tonne, up RMB 130 per tonne from the previous trading day. Domestic aluminium scrap prices broady followed the increase.

Regarding the price difference between A00 aluminium and aluminium scrap, as of August 26, the price difference between A00 aluminium and mixed aluminium extrusion scrap free of paint in Foshan was RMB 2,354 per tonne, and the price difference between A00 aluminium and shredded aluminium tense scrap was RMB 1,133 per tonne.

In terms of imports and exports, according to SMM customs data, China's aluminium scrap imports in July 2026 totalled approximately 119,600 tonnes, down M-o-M from 133,000 tonnes in June.

This was mainly due to the earlier price spread inversion between Chinese and overseas markets and shipment delays, keeping the supplement of high-quality overseas scrap at low levels. Driven by the UAE’s aluminium scrap export ban and the EU’s tariff hike, the contraction effect in European and Middle Eastern supply continues to emerge, further strengthening Southeast Asia’s position as the main complementary source.

The aluminium scrap market this week is expected to maintain its pattern of narrow sideways movement, with demand suppressing prices while costs provide support. Currently at the tail end of the traditional off-season, downstream end-use orders are unlikely to see a substantial surge.

Scrap utilisation enterprises continue to purchase as needed, procurement sentiment remains cautious, and the front-running effect ahead of the peak season is not yet significant, with subsequent order intake still requiring observation. The mainstream operating range for shredded aluminium tense scrap (priced based on aluminium content) is expected to hover around 19,900-RMB 20,700 per tonne.

Secondary aluminium alloy: Spot side: ADC12 market quotes edged up slightly overall today. The SMM ADC12 price rose RMB 50 per tonne from the previous trading day to RMB 23,950 per tonne, mainly driven by firm aluminium prices and improved market sentiment. Enterprises raised their quotes in response to cost and market movements, though the overall magnitude of price adjustments remained restrained.

Current end-use demand is still relatively weak, with downstream purchasing mostly need-based and limited acceptance of higher prices. Some enterprises chose to hold their prices steady for observation after earlier adjustments, and the overall market rise was still cautious. On balance, short-term ADC12 prices continue to receive cost support, but the demand side has not yet formed a clear upward driver. The room for further price increases and their sustainability will depend on aluminium price trends and the recovery of downstream demand.

Overall outlook: Macro sentiment is fluctuating, US-Iran negotiations are seesawing, and uncertainty persists over navigation through the Strait of Hormuz. Fundamentals side, the destocking trend in China’s aluminium ingot inventory continues, providing a floor for aluminium prices.

However, outside China, daily average aluminium production is expected to keep rebounding, driven by new capacity and production resumptions. Regarding domestic demand, the Ministry of Industry and Information Technology indicated it will accelerate the development of emerging pillar industries—including integrated circuits, aerospace, biomedicine, low-altitude economy, new-type energy storage, and intelligent robots—over the next five years, which will drive industrial aluminium semis demand in the long run.

In the short term, however, the switching period between the off-season and peak season has yet to be clearly defined, and the market remains in a wait-and-see mode regarding peak-season demand. Short-term aluminium prices are expected to consolidate on a subdued note.

Note: This article has been issued by SMM and has been published by AL Circle with its original information without any modifications or edits to the core subject/data.

LME aluminium price rises above 1% as stocks drop to 246,825t on August 26

Thu, 27 Aug 2026 05:07:00 +0530

The London Metal Exchange (LME) aluminium price reported improvements above 1 per cent across the pricing and contract segments on the August 26 close, recovering from the downward trend reported at the August 25 session.

The LME aluminium cash bid and offer prices gained 1.24 per cent day-on-day on August 26. The bid climbed to USD 3,227 per tonne from USD 3,187.5 per tonne, and the offer shifted to USD 3,227.5 per tonne from USD 3,188 per tonne.

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On August 26, the LME aluminium three-month bid and offer prices reported a 1.01 per cent rise over the previous close. The bid moved to USD 3,238 per tonne from USD 3,205.5 per tonne as the offer price surged to USD 3,239 per tonne from USD 3,206.5 per tonne.

The upward trend continued in the longer-dated contracts, with both the December 27 bid and offer prices reporting a 0.67 per cent surge over the previous session. The bid, rising from USD 3,122 per tonne, closed at USD 3,143 per tonne, and the offer jumped from USD 3,127 per tonne to USD 3,148 per tonne.

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The LME aluminium three-month Asian Reference Price closed at USD 3,225 per tonne on August 26. Unlike the pricing segments, it declined by 0.4 per cent from USD 3,238 per tonne at the August 25 close.

Moving on to the inventory levels, after remaining steady through six consecutive trading sessions, the LME aluminium opening stocks dropped from 246,925 tonnes to close at 246,825 tonnes, reporting a 0.04 per cent decline.

Live warrants contracted to 243,425 tonnes from 243,540 tonnes, reflecting a 0.04 per cent slump.

Contrarily, cancelled warrants rose from 3,375 tonnes to 3,400 tonnes, indicating a 0.74 per cent gain.

LME alumina Platts closed at USD 353.32 per tonne on August 26.

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Bridgnorth Aluminium targets growth in North America under new GM

Wed, 26 Aug 2026 11:00:00 +0530

Bridgnorth Aluminium has appointed Ilias Avgerinos as General Manager to lead a new expansion push after investment and operational upgrades returned the UK aluminium producer to round-the-clock production.

Avgerinos takes charge as the company targets growth in North America and newer markets including electrification, energy storage and defence. He replaces Gerhard Trilling following a difficult period for the business, which says it has restored full operational performance within two years and built an order book worth more than GBP 300 million (USD 408.83 million).

“This is a very exciting time to be joining Bridgnorth Aluminium, a company I know well after sitting on the board since 2024,” explained Ilias.

“We are the UK’s only coil aluminium rolling mill and play a critical role in sectors rangingfrom printing, building and construction, packaging and, increasingly, energy storage. Recent investment has increased our capacity and the ability to explore new markets, and this has seen us grow sales and return to round the clock production in Bridgnorth", he added.

Expansion follows GBP 180 million investment

The appointment follows completion of a GBP 180 million (USD 245.21) investment programme at Bridgnorth Aluminium’s Stourbridge Road site in July.

The programme included a new thin-gauge slitting line, 35 new jobs and a five-year supply agreement with Lotte Aluminium USA for battery applications. The investment has expanded the company’s production capability and provides an entry point into demand linked to energy storage and electrification.

Bridgnorth Aluminium describes itself as the UK’s only coil aluminium rolling mill. Its products serve sectors including printing, building and construction, packaging and, increasingly, energy storage.

“Recent investment has increased our capacity and the ability to explore new markets, and this has seen us grow sales and return to round-the-clock production in Bridgnorth,” Avgerinos said.

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North America and UK market in focus

Avgerinos previously held senior roles within Bridgnorth Aluminium’s parent, Viohalco Group, and has served on the company’s board since 2024.

He said the business sees opportunities in North America, as well as in electrification, energy and defence. He also identified potential in the UK market, where manufacturers are looking to shorten supply chains and secure more domestic production capacity for critical materials.

The company’s growth strategy therefore combines overseas sales opportunities—particularly in battery-related applications—with the prospect of greater demand from UK manufacturers seeking locally produced aluminium coil.

Workforce central to expansion

Bridgnorth Aluminium employs about 360 people at its Stourbridge Road site. Avgerinos said workforce development, apprenticeships and recruitment would be central to delivering the company’s expansion plans.

“A big part of my focus will be on the 360 people that work at our site,” he said. “If we are going to achieve our expansion plans, we need to retain and develop our committed workforce and attract more talent.”

Nikolina Austin has also joined the company’s leadership team as head of HR after more than a decade at Amazon. Her role will include supporting recruitment and introducing workforce initiatives as Bridgnorth Aluminium seeks to build capacity and enter new markets.

“I want us to nurture this unique culture and make it central to our business going forward, supporting people to progress within the company and using it to attract the best talent here. It’s an exciting time to be involved in aluminium in the UK", she concluded.

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EGA’s Al Taweelah smelter restoration reaches 25% milestone, full output targeted in Q1 2027

Wed, 26 Aug 2026 08:30:00 +0530

Emirates Global Aluminium’s restoration of its Al Taweelah smelter has reached a 25 per cent milestone, with 315 of the facility’s 1,262 reduction cells now restored and back in operation.

The company said the progress puts it on track to restore full production at the smelter in the first quarter of 2027, as work continues across all three potlines in parallel to accelerate the pace of reduction cell start-ups.

Al Taweelah sustained significant damage on March 28 when an Iranian attack on Khalifa Economic Zone Abu Dhabi led to an emergency shutdown of all EGA’s facilities on the site.

To restore hot metal production, EGA is progressively repairing and restarting each reduction cell. Potline 1 was energised on May 26, followed by potline 3 on July 13 and potline 2 on August 3.

Following a restart, a reduction cell typically takes a week to stabilise and reach full production. Some of the hot metal produced is used to restart subsequent reduction cells, while the balance is delivered to EGA’s Al Taweelah Casthouse to be cast into finished “premium aluminium” products.

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Abdulnasser Bin Kalban, Chief Executive Officer of Emirates Global Aluminium, said, “The restoration of production at Al Taweelah is the biggest challenge we have ever faced at EGA. This work is led by a dedicated team of experts, and we are applying decades of experience as well as innovative new methods to make safe progress as fast as possible. Our continued strong progress gives us confidence that we will reach full production in Q1 2027.”

Around 1,000 people are currently working on the restoration of hot metal production at Al Taweelah smelter.

The Al Taweelah alumina refinery continues to produce at around 50 per cent capacity. EGA said the pace of further ramp-up in alumina production will be determined by supply chain considerations and the optimisation of its alumina sourcing strategy.

The continued recovery of aluminium production at Al Taweelah smelter is not dependent on the refinery returning to full capacity.

Meanwhile, production ramp-up at EGA’s new Al Taweelah recycling plant continues on track, with full production expected by late Q4 2026.

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