AlCircle: Latest primaryaluminium news update

Aluminium Corporation of China Limited shares fall 3.38% amid pressure on aluminium

Wed, 13 May 2026 08:45:00 +0530

Shares of Aluminium Corporation of China Limited slipped 3.38 per cent on Monday, May 11, closing at HKD 11.15 (USD 1.43) from HKD 11.54 (USD 1.48) on the Hong Kong Stock Exchange, amid broader weakness across the commodities sector. According to market data from StockInvest.us dated May 12, 2026, the stock moved within a volatile trading range during the session, even as the company continued to hold positive technical indicators from its moving averages.

Known globally as Chalco, the Beijing-headquartered aluminium major remains one of the world’s largest integrated aluminium producers, with operations spanning bauxite mining, alumina refining, primary aluminium smelting and downstream processing. The company is listed on the Hong Kong Stock Exchange under 2600.HK and on the Shanghai Stock Exchange as 601600.SS.

The latest decline reflects mounting pressure on metals producers as energy costs, fluctuating aluminium prices and cautious industrial demand continue to weigh on investor sentiment. Despite the pullback, analysts note that Chalco’s vertically integrated structure provides the company with stronger control over raw material sourcing and production costs compared with many global peers.

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Chalco generates the bulk of its revenue from alumina refining and primary aluminium sales, supported by energy and trading businesses. Alumina continues to be a major earnings contributor as China retains its position as the world’s leading producer.

The company’s business model is designed around scale and supply chain integration. By operating across the full aluminium value chain, Chalco is able to reduce exposure to supply disruptions while maintaining competitive production efficiency in China’s regulated aluminium market.

For international investors, Chalco remains a key gateway to China’s aluminium industry and broader commodity cycle exposure. The company’s supply chain relevance has also increased with rising global demand for lightweight materials used in automotive manufacturing, renewable power systems and electrification projects.

Market observers said Chalco’s export exposure and its role in supplying aluminium products to global manufacturing chains continue to tie its performance closely to worldwide industrial activity, including demand trends linked to the United States and other major economies.

Must read: Key industry individuals share their thoughts on the trending topics

Alba sales decline 17% in Q1 2026 as Gulf conflict disrupts aluminium supply chains

Wed, 13 May 2026 06:20:00 +0530

Aluminium Bahrain, the world’s largest aluminium smelter on a single site, reported a sharp rise in profitability in Q1 2026 despite operational disruptions caused by regional tensions across the Gulf.

Profit attributable to equity holders surged 316 per cent year on year to BHD 75.3 million (USD 200.3 million) in Q1 2026, compared with BHD 18.1 million (USD 48.2 million) in Q1 2025. However, compared with Q4 2025, profit declined from BHD 108.7 million (USD289.2 million), reflecting a quarter-on-quarter drop of around 30.7 per cent.

Operationally, the quarter reflected mounting regional pressure on production and trade flows. Sales volume declined 17 per cent Y-o-Y in Q1 2026, to 312,563 tonnes as shipping disruptions, including constraints through the Strait of Hormuz, affected exports and logistics. Net finished production also fell 14 per cent to 339,734 tonnes following the controlled shutdown of Lines 1–3 amid prevailing regional tensions.

Value Added Products (VAP) continued to account for the majority of shipments at 71 per cent, although VAP volumes declined 16 per cent Y-o-Y to 222,626 tonnes due to weaker shipment activity. Alba also confirmed natural gas prices at USD 4.5 per MMBTU for the full 2026 calendar year.

Basic and diluted earnings per share rose to 53 fils from 13 fils a year earlier, while total comprehensive income climbed 353 per cent Y-o-Y to BHD 76.1 million (USD 202.4 million).

The company’s balance sheet strengthened during the quarter as total equity attributable to Alba shareholders increased to BHD 2,098.7 million (USD 5.58 billion) as of March 31, 2026, compared with BHD 2,084.6 million at the end of December 2025. Total assets rose 7 per cent to BHD 2,807.6 million (USD 7.47 billion).

Strait of Hormuz risks expose Gulf aluminium dependence

The quarter also reinforced how heavily the Gulf aluminium industry depends on the Strait of Hormuz, the main export route for aluminium from Bahrain, the UAE and Qatar. The narrow 33-kilometre-wide corridor remains critical for a region whose aluminium industry was built around low-cost energy advantages rather than diversified logistics infrastructure.

The Gulf accounts for around 8-9 per cent of global primary aluminium production, while Aluminium Bahrain alone operates nearly 1.6 million tonnes of annual smelting capacity, making it one of the world’s largest single-site producers.

Regional conflict increased supply chain uncertainty during Q1 2026, even as stronger US manufacturing activity and resilient Chinese industrial output supported the global economy. Global aluminium demand rose 0.5 per cent Y-o-Y, driven by packaging, automotive and electrical sectors, while supply increased 2 per cent but remained constrained by China’s 45 million tonne production cap.

Middle East aluminium production declined around 3 per cent Y-o-Y, due to conflict-related curtailments. As a result, global markets remained heavily dependent on Chinese supply, with a surplus of around 592,000 tonnes including China, while ex-China markets stayed in a deficit of roughly 135,000 tonnes.

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Alba pushes expansion, logistics flexibility and sustainability plans

Alongside managing operational disruptions, Aluminium Bahrain continued to advance its long-term growth strategy during 2026. On May 6, 2026, the company signed a Share Purchase Agreement with American Industrial Partners for the proposed acquisition of Aluminium Dunkerque after obtaining the required works council approvals. The transaction is still subject to regulatory clearance before completion.

Amid tightening raw material availability, Alba introduced disciplined production curtailment measures aimed at optimising alumina consumption, maintaining smelter stability and protecting operational integrity. The company said it continues to closely monitor inventory positions and operating conditions while maintaining operational flexibility.

To strengthen supply-chain resilience, Alba also expanded its sourcing diversification strategy and introduced more flexible logistics arrangements, including the use of multiple regional ports and multimodal transport routes for both imports and exports. Read Alba’s 2025 performance report: Higher LME prices and operational discipline drive 18.5% YoY profit growth for a indepth view.

For 2026, the company’s priorities remain centred on operational continuity, employee safety and rapid response capabilities during regional disruptions. At the same time, Alba plans to continue advancing sustainability initiatives aligned with Bahrain’s net-zero ambitions while expanding its portfolio of value-added aluminium products supported by certification frameworks.

Efficiency improvements remain another major focus area. Since 2024, Alba’s e-Al Hassalah programme has delivered cumulative benefits of USD 126.37 million despite the company reporting a marginal net loss of USD 0.52 million in Q1 2026. Alba said the programme will continue using Lean Six Sigma methodologies and AI-driven initiatives to improve operational performance, while long-term strategic projects such as Alba Daiki Sustainable Solutions remain under development to support future growth positioning.

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Tightening supply combined with import pullback, tight aluminium scrap circulation underpins prices

Wed, 13 May 2026 06:30:00 +0530

During the night session, aluminium alloy 2607 exhibited an overall trend of "retreat after rapid rise, hovering at lows." From the intraday perspective, prices first dipped quickly to around 23,180 after the opening, then rebounded as capital flowed in, briefly surging to around 23,340-23,350, with short-term sentiment somewhat recovering. However, selling pressure above remained evident, and prices gradually pulled back after hitting the intraday high. After 23:00, prices fell back below the average price line, entering a pace of being in the doldrums. Near the close, futures mostly moved sideways within the RMB 23,240-23,270 per tonne range, ultimately closing at RMB 23,255 per tonne, edging down from the previous settlement.

Spot-futures price spread daily report: According to SMM data, on May 12, the SMM ADC12 spot price's theoretical premium over the most-traded cast aluminium alloy contract (AD2606) at the 10:15 closing price narrowed to RMB 355 per tonne.

Warrant daily report: SHFE data showed that on May 12, total registered warrants for cast aluminium alloy stood at 33,884 tonnes, up 237 tonnes from the previous trading day. By region, Shanghai's total registered volume was 776 tonnes, unchanged from the previous trading day; Guangdong's total registered volume was 10,367 tonnes, down 30 tonnes; Jiangsu's total registered volume was 6,176 tonnes, up 177 tonnes; Zhejiang's total registered volume was 9,747 tonnes, up 90 tonnes; Chongqing's total registered volume was 4,600 tonnes, up 237 tonnes; Sichuan's total registered volume was 995 tonnes, flat from the previous trading day.

Aluminium scrap: On Tuesday, A00 aluminium prices edged down RMB 10 per tonne from the previous trading day, while the aluminium scrap market remained largely stable. Shredded aluminium tense scrap (priced based on aluminium content) traded in a mainstream range of RMB 20,500-21,000 per tonne (tax-exclusive). Imported zorba (Ningbo Port) saw its weekly trading range raised by RMB 200 per tonne to RMB 21,870-22,070 per tonne (tax-inclusive). On the price difference between A00 aluminium and aluminium scrap, on May 12, the price difference between A00 aluminium and mixed aluminium extrusion scrap free of paint in Foshan was recorded at RMB 2,723 per tonne, and the price difference between A00 aluminium and shredded aluminium tense scrap was RMB 2,078 per tonne. Supply side, the tightening trend in compliant invoice sources intensified, raw material prices swung wildly, and aluminium scrap yards generally held back from selling and held prices firm. High LME prices led import traders to adopt cautious strategies, and subsequent imports are expected to pull back. Demand side, the traditional off-season combined with prominent compliant invoice issues led some regional enterprises to reduce or halt production. Wrought aluminium alloy scrap was supported by secondary aluminium plate/sheet and strip operating rates, but the support was limited. Downstream procurement was mainly driven by rigid demand, with strong wait-and-see sentiment. The off-season effect on the demand side continued, with downstream secondary aluminium enterprises cautiously watching the market. Procurement was mainly small-lot restocking for rigid demand. The divergence between aluminium tense scrap and wrought aluminium alloy scrap persisted, order growth remained limited, and vigilance is still needed against market risks from aluminium price fluctuations and tight supply.

Silicon metal: On May 12, SMM east China non-oxygen blown #553 was stable from the previous day; oxygen-blown #553 was stable from the previous day; #521 was stable from the previous day; #441 was stable from the previous day; #421 was stable from the previous day; #421 for silicone use was stable from the previous day; #3303 was stable from the previous day. Silicon prices in Kunming, Huangpu Port, Tianjin, Northwest China, Xinjiang, Shanghai, and Sichuan remained stable.

Markets outside China: Current import ADC12 quotes remained at the high range of USD 3,320-3,400 per tonne, with instant import losses still exceeding RMB 3,000 per tonne, and the theoretical import window continued to stay closed.

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 cash offer slips to $3,639.5/t amid softer trade

Wed, 13 May 2026 05:10:00 +0530

In comparison to the previous day’s close, the London Metal Exchange (LME) aluminium price on May 12 dipped slightly. A similar movement was seen at the LME inventory level, but the live warrants and alumina platts price showed no change from the last day’s closing.

The LME cash bid declined by USD 15 per tonne or 0.4 per cent, changing from USD 3,654 per tonne to USD 3,639 per tonne. Similarly, the LME cash offer also dipped by USD 15.5 per tonne or 0.4 per cent, moving down to USD 3,639.5 per tonne from USD 3,655 per tonne.

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Looking at the forward-dated contracts, the LME 3-month bid inched down by USD 4.5 per tonne or 0.1 per cent, from USD 3,570 per tonne to USD 3,565.5 per tonne. At the same time, the LME 3-month offer finally stood at USD 3,566 per tonne from USD 3,571 per tonne on May 11, reflecting a change of USD 5 per tonne or 0.14 per cent.

The downward price movement continued in the longer-dated contracts, where both the LME December 27 bid and offer inched down by USD 8 per tonne or 0.3 per cent, with the bid shifting from USD 3,153 per tonne to USD 3,145 per tonne and the offer from USD 3,158 per tonne to USD 3,150 per tonne.

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The LME 3-month Asian Reference Price moved down by USD 17.5 per tonne or 0.5 per cent, where on May 11 it was recorded at USD 3,579.5 per tonne, which on May 12 changed to USD 3,562 per tonne.

At the inventory level, the LME opening stock shifted from 355,775 tonnes to 353,350 tonnes, showing that it moved down by 2,425 tonnes or 0.7 per cent. Concurrently, the cancelled warrants changed from 21,625 tonnes to 19,275 tonnes, reflecting a difference of 2,350 tonnes or 11 per cent.

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The LME live warrant showed no change and on May 12, it is recorded at 331,725 tonnes.

At the same time, the LME alumina prices also remained unchanged at USD 307.15 per tonne on May 12.

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The Middle East conflict may push global aluminium price above $4000/t through 2027

Wed, 13 May 2026 02:30:00 +0530

Global aluminium prices are expected to remain above USD 4,000 per metric tonne between the third quarter of 2026 and the second quarter of 2027, according to the Commodities Research Unit (CRU).

Paul Williams, head of aluminium value chain at CRU, said at the World Aluminium Summit in London that the expected price rise is linked to a growing supply deficit caused mainly by the conflict involving Iran.

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Aluminium prices on the London Metal Exchange have already increased by 18 per cent this year. Benchmark aluminium prices were last reported at USD 3,559 per tonne after reaching a four-year high of USD 3,672 per tonne in mid-April.

The Middle East conflict has disrupted aluminium exports from Gulf producers and affected imports of raw materials needed by smelters in the region. Two smelters in the Gulf were hit by Iranian strikes in late March.

The Middle East normally accounts for around 9 per cent of global aluminium supply. Aluminium is widely used in transport, construction and packaging industries.

Also read: Alcoa’s aluminium business shows strong growth: expects production of up to 2.6 Mt in 2026

CRU expects the global aluminium market to face a deficit of around 1.4 million tonnes in 2026. The consultancy also estimates that aluminium production in the Gulf region could fall by around 25 per cent year-on-year.

Williams said, “We've seen deficits like this in the market before ... but this time it is going to be far more difficult," because of the scale of supply disruption and geopolitical uncertainty.

According to CRU forecasts, aluminium prices could reach around USD 4,020 per tonne in the third quarter of 2026 and rise further to about USD 4,105 per tonne in the second quarter of 2027.

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The current all-time high for aluminium on the London Metal Exchange was recorded on March 7, 2022, when prices reached USD 4,073.50 per tonne after the start of the Russia-Ukraine crisis.

Alcoa’s aluminium business shows strong growth: expects production of up to 2.6 Mt in 2026

Tue, 12 May 2026 19:30:00 +0530

Alcoa Corporation continues to benefit from strong demand in its aluminium business, supported by the packaging, electrical and transportation sectors.

The company’s aluminium production capacity has increased following the restart of the San Ciprián smelter in Spain, Alumar in Brazil and Lista in Norway.

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In the first quarter of 2026, Alcoa’s Aluminium segment’s third-party sales rose to USD 2.54 billion from USD 1.91 billion in the first quarter of 2025. Aluminium product sales also increased to USD 2.58 billion from USD 1.96 billion in the same period last year.

The company said aluminium demand has continued to grow due to wider use in electric vehicles, recycled aluminium products, and rechargeable batteries.

Higher aluminium prices have also supported earnings. Prices have increased because of tensions in the Middle East and disruptions to trade flows through the Strait of Hormuz, which tightened aluminium supply in the region.

Also read: JPMorgan Chase and Co. says aluminium smelters may face a longer recovery period than petroleum coke supply

Alcoa is also benefiting from US tariffs on imported aluminium. In June 2025, the US administration raised tariffs on imported aluminium to 50 per cent to support domestic producers and reduce trade imbalances. The higher tariffs contributed to stronger aluminium prices in the domestic market.

For 2026, Alcoa expects aluminium production between 2.4 million tonnes and 2.6 million tonnes, while shipments are projected between 2.6 million tonnes and 2.8 million tonnes. The company said the Aluminium segment is expected to remain its main growth driver in the near term.

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Among competitors, Constellium SE reported a 24 per cent rise in revenue in its Packaging and Automotive Rolled Products segment during the first quarter of 2026, supported by higher metal prices, though shipments fell 3 per cent.

Ryerson Holding Corporation reported revenue growth of more than 30 per cent in the first quarter of 2026 after its merger with Olympic Steel. The company also saw higher selling prices across aluminium products.

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Shares of Alcoa Corporation have risen 124.7 per cent over the past year. The company is trading at a forward price-to-earnings ratio of 7.96 times, compared with the industry average of 8.49 times. Its 2026 earnings estimate has increased 53.2 per cent over the past 60 days.

JPMorgan: Aluminium smelters may face a longer recovery period than petroleum coke supply

Tue, 12 May 2026 17:30:00 +0530

Aluminium production outside the Gulf region could also be affected if petroleum coke shortages worsen because the Strait of Hormuz remains closed.

A report by JPMorgan Chase & Co. said petroleum coke, a key raw material used in aluminium production, may become a major problem for aluminium producers globally as tensions continue in the Persian Gulf region.

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According to the report, around 20 per cent of global petroleum coke supply is affected by the Strait of Hormuz disruption because petroleum coke is produced during oil refining. It warned that if shortages become severe, aluminium producers outside the Gulf could face operational problems or may have to reduce production.

The report stated, “If petroleum coke shortages become acute, additional aluminium supply outside the Gulf could face operational challenges or be forced to curtail production.”

JPMorgan Commodities Research expects the global aluminium market to be short by around 2 million tonnes in 2026.

Also read: Texmaco Rail bags $6M domestic rail equipment order from Vedanta Aluminium

The report said the aluminium market is already under pressure because of disruptions in alumina shipments to Gulf smelters and shipping route interruptions linked to the conflict in the Persian Gulf.

It added that continued disruption in alumina supply to Gulf smelters could result in further shutdowns in the aluminium sector.

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Apart from alumina, the petroleum coke market is also facing supply tightness. The report said both calcined petroleum coke (CPC) and green petroleum coke (GPC) markets are under pressure because of shutdowns in the Gulf region.

Furthermore, US Gulf petroleum coke prices have increased by around 20 per cent (currently USD 145 per tonne) since the conflict began, while several other fossil fuel prices have also risen sharply.

Must read: Key industry individuals share their thoughts on the trending topics

JPMorgan warned that supply and demand imbalances could continue even if the conflict eases. According to the report, petroleum coke production could restart faster than aluminium smelting operations, as restarting smelters may take between 12 and 18 months. However, the report said the timing of recovery in both supply and demand remains uncertain.

US eases tariff pressure on Canadian and Mexican metal producers

Tue, 12 May 2026 12:30:00 +0530

The US Commerce Department has introduced a new process that would allow steel and aluminium producers from Canada and Mexico to apply for reduced Section 232 tariffs if they commit to investing in manufacturing operations in the United States. Under the proposal, eligible companies could see tariffs lowered from the current 50 per cent rate to 25 per cent, according to a notice filed in the Federal Register.

The initiative aims to encourage foreign metal producers to expand industrial capacity in the US while supporting North American automotive supply chains. To qualify, companies must already supply steel or aluminium, directly or indirectly, to US manufacturers of automobiles or medium- and heavy-duty vehicles. Their exports must also meet the preferential trade requirements under the United States-Mexico-Canada Agreement.

The policy follows the Trump administration’s April revision to Section 232 tariffs on steel and aluminium imports, which imposed a 50 per cent duty on products made predominantly of steel or aluminium, including steel coils and aluminium sheets.

The tariff measures have also prompted support initiatives in Canada. The Canadian government recently approved USD 1.5 billion in financial aid for aluminium, steel and copper companies affected by the new US tariffs that took effect on April 6. The package includes USD 1 billion through the Business Development Bank of Canada and another USD 500 million for smaller companies to ease cash flow pressures, protect jobs, encourage market diversification and stabilise supply chains.

To secure the lower tariff, companies must commit to building new facilities or expanding existing US operations producing primary steel or primary aluminium for the automotive sector. The Commerce Department said simple upgrades or reconfigurations of existing plants would not qualify.

The reduced tariff would apply only to volumes matching the projected annual production capacity of the planned US facility and for a fixed period set by the department.

Must read: Key industry individuals share their thoughts on the trending topics

Applicants must submit documentation certified by a senior executive, such as a chief financial officer or general counsel, detailing existing Canadian or Mexican plants, product categories, US customers and raw material supply sources. Companies must also provide plans for the proposed US facility, including its location, objectives, development status and expected workforce expansion, along with commitments to milestones such as land acquisition, facility design completion, construction progress and the start of commercial production.

Inventory buildup offsets macro tailwinds, aluminium prices fluctuate

Tue, 12 May 2026 07:25:00 +0530

Futures: The most-traded SHFE aluminium 2606 contract closed at RMB 24,690 per tonne, up 0.57 per cent. The price was above MA5 (24,554.00), MA10 (24,614.50), and MA60 (24,532.25), but below MA30 (24,753.83), with short-term moving averages providing support while the price was under pressure at MA30. The MACD indicator DIF (-37.1805) was below DEA (18.0351), with the histogram in negative territory (-110.4312), indicating weakening bearish momentum. The suggested core trading range for SHFE aluminium is 24,000-25,200. LME aluminium 3M closed at USD 3,573.5 per tonne, down 0.22 per cent, moving sideways. The price was above MA5 (3,536.90), MA10 (3,527.40), and MA30 (3,527.32), and also above MA60 (3,387.01), with short-, medium-, and long-term moving averages all providing support, indicating an overall bullish trend. The MACD indicator DIF (27.9887) was below DEA (36.4100), with the histogram in negative territory (-16.8426), indicating weakening upward momentum. The suggested core trading range for LME aluminium is USD 3,500-3,620 per tonne.

Macro front: A spokesperson of the Ministry of Foreign Affairs announced that at the invitation of President Xi Jinping, US President Trump will pay a state visit to China from May 13 to 15. This will be the first face-to-face meeting between the two heads of state since their meeting in Busan last October, and the first visit to China by a US president in nine years. President Xi Jinping will have an in-depth exchange of views with President Trump on major issues concerning China-US relations as well as world peace and development. US-Iran negotiations have reached an impasse. US President Trump stated that the ceasefire agreement between the US and Iran remains in effect but is "extremely fragile" and in a "precarious" state. Trump said the core of the US proposal is that "Iran must never possess nuclear weapons," yet Iran did not make such a commitment in its response. Trump has not yet decided whether to restart the "freedom plan" to facilitate passage through the Strait of Hormuz. Iran's Ministry of Foreign Affairs stated that the negotiation priorities are ending the war, lifting sanctions, and resolving the blockade, and that decision on issues such as uranium enrichment will be made at an appropriate time.

Fundamentals: In China, the lifting of the installation suspension order, backlogged supplies entering warehouses, concentrated release of enterprise inventories, and cautious end-user stockpiling willingness combined to drive a continued increase in domestic aluminium ingot social inventory, exerting strong downward pressure on domestic aluminium prices. In markets outside China, geopolitical conflicts disrupted the aluminium supply side, and LME aluminium inventory continued destocking, hitting a multi-year historical low. Inventory side, on Monday, aluminium ingot inventory in major domestic consumption areas stood at 1.44 million tonnes, down 1,000 tonnes W-o-W from last Friday, with destocking mainly in Guangdong and Gongyi.

Primary aluminium market: Yesterday morning, the SHFE aluminium 2605 contract fluctuated upward, with the overall price centre rising compared to the previous trading day. Driven by higher aluminium prices, market selling sentiment rose notably yesterday, with increased activity on the offer side but no significant improvement on the buy side. The mainstream spot quotation fell from the SMMA00 aluminium average price to SMMA00-RMB 10 per tonne. Yesterday, the east China market selling sentiment index was 2.91, up 0.17 W-o-W; the purchasing sentiment index was 2.66, flat W-o-W. Yesterday, the trading atmosphere in the central China market remained relatively subdued, but improved slightly W-o-W. Buying sentiment among downstream processing enterprises remained sluggish. As aluminium prices rose, market premiums showed a downward trend, with quotations falling from a premium of RMB 20-30 per tonne over the central China price before the opening to between a premium of RMB 10 per tonne and a discount of RMB 10 per tonne to the central China price. Yesterday, the central China market selling sentiment index was 2.82, up 0.01 W-o-W; the purchasing sentiment index was 2.29, up 0.01 W-o-W.

Aluminium scrap: Yesterday, A00 aluminium prices rose RMB 170 per tonne from the previous trading day, and aluminium scrap market prices generally followed with increases of RMB 100-200 per tonne. The mainstream range for shredded aluminium tense scrap (priced based on aluminium content) operated around RMB 20,500-21,000 per tonne (tax exclusive). Imported zorba (Ningbo Port) operated in the range of RMB 21,670-21,970 per tonne (tax inclusive). Regarding the price spread, on May 11, the price difference between A00 aluminium and mixed aluminium extrusion scrap free of paint in Foshan was recorded at RMB 2,643 per tonne, and the price difference between A00 aluminium and shredded aluminium tense scrap was RMB 1,998 per tonne. Supply side, the shipment pace of aluminium scrap in May remained generally stable compared to April YoY, raw material prices swung wildly, and aluminium scrap yards generally held back from selling and held prices firm; high LME prices led import traders to adopt cautious strategies, and subsequent imports are expected to pull back. Demand side, the traditional off-season set in, the operating rate of secondary aluminium producers pulled back slightly, aluminium tense scrap was purchased as needed with low inventory operations, wrought aluminium alloy scrap was supported by secondary aluminium plate/sheet and strip operating rates but with limited strength, downstream demand was mainly rigid with strong wait-and-see sentiment. This week, the aluminium scrap market is expected to remain in the doldrums at high levels, with the mainstream range for shredded aluminium tense scrap (priced based on aluminium content) maintained at RMB 20,500-21,300 per tonne (tax exclusive). Supply side, policy constraints are unlikely to ease in the short term, tight compliant supply sources coupled with expected pullback in imports provided certain price support. Demand side, the off-season effect continued, downstream secondary aluminium enterprises remained cautious and watchful, purchasing mainly through small rigid-demand restocking orders, the divergence pattern between aluminium tense scrap and wrought aluminium alloy scrap remained unchanged, order increments were limited, and vigilance is still needed against market risks from aluminium price fluctuations and tight supply.

Secondary aluminium alloy: Spot cargo side, the ADC12 market was generally stable with slight rise yesterday. Most enterprises raised quotations by RMB 100 per tonne, following the SHFE aluminium futures rebound and rising aluminium scrap raw material costs. Although market sentiment has recovered somewhat, weak downstream demand remains a significant constraining factor, leading enterprises to adopt a cautious pricing mentality, with most following the prevailing market trend. In the short term, ADC12 prices are expected to move sideways within a narrow range amid the tug-of-war between cost support and lacklustre demand.

Aluminium Market Summary: Supply disruption risks for aluminium outside China have not yet subsided, and the ex-China aluminium ingot supply-demand gap will continue to provide support for aluminium prices; meanwhile, the continuation of higher-than-expected inventory buildup in China will weigh on domestic aluminium prices. At the same time, tightened invoicing regulations may lead to structural tightness in spot cargo, and the weakening spot market will further limit upside room for domestic aluminium prices. Close attention should be paid to the potential turning point in China's social inventory, which could drive a rebound in aluminium prices.

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 rallies as cash offer reaches $3,655/t, again slowing moving to its four-year high

Tue, 12 May 2026 05:50:00 +0530

On May 11, the London Metal Exchange (LME) aluminium price continued to rise significantly from the previous close, again racing towards a four-year high. Along with the price, the LME inventory also rose compared to the previous day’s close. On the other hand, the LME alumina platts price on May 11 showed no change.

The LME cash bid rose by USD 94 per tonne from USD 3,560 per tonne to USD 3,654 per tonne and the cash offer settled at USD 3,655 per tonne, from USD 3,560.5 per tonne, reflecting a change of USD 94.5 per tonne and both showed a 3 per cent change in total.

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A similar impact is seen on the LME 3-month bid and offer, where the former changed from USD 3,511 per tonne to USD 3,570 per tonne, owing to a change of USD 59 per tonne or 2 per cent and the latter changed from USD 3,511.5 per tonne to USD 3,571 per tonne, owing to a difference of USD 59.5 per tonne or 2 per cent.

The LME longer-dated contracts also witnessed the change, where both the December 27 bid and offer changed by USD 35 per tonne or 1 per cent, where the bid moved from USD 3,118 per tonne to USD 3,153 per tonne and the offer finally stood at USD 3,123 per tonne from USD 3,158 per tonne.

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The LME 3-month Asian Reference Price on May 11 rose from USD 3,503 per tonne to USD 3,579.5 per tonne, owing to a difference of USD 76.5 per tonne or 2 per cent.

At the inventory level, the opening stock changed from 358,225 tonnes to 355,775, showing a dip of 2,450 tonnes or 1 per cent. The declining trend continued in the cancelled warrants, where it moved down from 24,050 tonnes to 21,625 tonnes, inching down by 2,425 tonnes or 10 per cent.

For forward-thinking aluminium market insights amidst supply chain and price challenges, read "ALuminium LeaderSpeak 2026."

However, the LME live warrants remain unchanged from the previous day’s close and as of May 11, it is at 331,725 tonnes.

Concurrently, no change has been witnessed in the LME alumina platts price on May 11 and it is currently at USD 307.15 per tonne.

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