AlCircle: Latest primaryaluminium news update

Destocking acceleration provides support, export concerns limit rebound space

Mon, 29 Jun 2026 08:55:00 +0530

Futures: SHFE aluminium closed at RMB 23,115 per tonne last Friday, up 0.81 per cent, with intraday fluctuations within 22,890-23,190. Prices are far below all key moving averages (MA5=23,119, MA10=23,622, MA30=24,149, MA60=24,501.5).

The moving averages are in a bearish alignment and diverging at an accelerating pace, signalling pronounced weakness. The MACD indicator shows DIF at -359.93 and DEA at -249.68, with a death cross downward and the negative histogram expanding to -220.50, indicating strengthening bearish momentum.

Trading volume slightly picked up to 88,800 lots but remains at a low level overall. SHFE aluminium's core trading range is recommended to reference 22,800-23,300. LME aluminium closed at USD 3,179 per tonne, down 0.59 per cent, with intraday fluctuations within 3,167-3,196. Prices are far below all key moving averages (MA5=3,187.4, MA10=3,290.35, MA30=3,505.97, MA60=3,528.59).

The moving averages are in a bearish alignment, with the medium-term trend clearly weakening. The MACD indicator shows DIF at -106.999 and DEA at -74.075, with a death cross downward and the negative histogram expanding to -65.85, signalling strengthening bearish momentum. LME aluminium's core trading range is recommended to reference 3,150-3,200.

Macro front: An Iranian official said Iran did not attend the technical negotiations originally scheduled for June 29, citing "recent attacks and failure to meet relevant conditions." Sources said the plan to resume US-Iran technical negotiations in Switzerland has stalled due to renewed conflict between the two countries. Latest reports indicate that the US and Iran have reached a consensus to cease mutual strikes and will hold a meeting this week.

The two sides will meet in Doha, the capital of Qatar, on Tuesday to discuss disputes concerning the Strait of Hormuz. Iranian Foreign Minister Araghchi stated that within the next 30 days, the Strait of Hormuz will remain under full supervision and management by Iran, and once all obstacles are removed, the waterway's full passage capacity will be restored. Any intervention or unilateral action will worsen the situation and delay the reopening of the strait.

Fundamentals: Supply side, according to SMM data, this week's domestic aluminium production rebounded W-o-W, mainly driven by the production ramp-up of newly commissioned capacity and resumption of idle capacity. Last week, the proportion of liquid aluminium rose 0.2 percentage points W-o-W, and casting ingot output further declined.

Outside China, high prices previously spurred accelerated commissioning of new projects. As these new projects are energised and ramp up, operating aluminium capacity outside China is expected to rise further W-o-W. On the inventory front, this week's aluminium inventory continued its smooth destocking trend.

As of this Monday, domestic social inventory of aluminium ingot fell by 40,000 tonnes compared to last Thursday and by 82,000 tonnes compared to last Monday. Lower aluminium prices and a pickup in downstream buying sentiment drove the destocking. On the exports front, the SHFE/LME price ratio recovered rapidly last week. As of June 25, the ratio had rebounded to 7.29, up 12.2 per cent from the previous low of 6.5. The import loss narrowed to around RMB 3,400 per tonne, down nearly 45 per cent from the peak loss of RMB 7,604 per tonne.

As a result, the profit margins that had been driving large-scale aluminium semis exports shrank sharply, and new orders for some segments already declined. With orders on hand gradually being fulfilled, if export margins cannot recover, aluminium semis exports may face downside risks going forward.

Primary aluminium market: In early trading, the SHFE aluminium 2606 contract’s price centre ran above the level in the same period of the previous trading day. Influenced by rising aluminium prices and restocking the previous day, overall market purchasing sentiment weakened last Friday. However, as sellers held prices firm near recent lows, transaction and offer prices edged up.

Mainstream transactions were executed at a discount of RMB 10-0 per tonne against the SHFE July contract. Last Friday, east China shipment sentiment index registered 3.14, up 0.25 M-o-M; procurement sentiment index stood at 3.00, down 0.16 M-o-M. Futures aluminium prices fell for days consecutively, leaving the central China market sluggish with strong bearish sentiment, and stockpiling willingness was low on Friday.

Downstream processing enterprises preferred warrant or long-term contract transactions, leading to heavy warrant outflows, while suppliers showed weak willingness to hold prices firm, pushing transaction prices steadily lower. In the end, actual transaction prices in central China ranged at a discount of RMB 10-40 per tonne against the SHFE July contract. Last Friday, central China shipment sentiment index came in at 2.90, up 0.01 M-o-M; procurement sentiment index was 2.14, remaining flat M-o-M.

Aluminium scrap: Last Friday, SMM A00 spot aluminium closed at RMB 22,880 per tonne, down RMB 30 per tonne from the previous trading day. The aluminium scrap market showed notable resilience, with only slight corrections. In terms of price spreads, on June 26, the price difference between A00 aluminium and mixed aluminium extrusion scrap free of paint in Foshan stood at RMB 1,942 per tonne, and the price difference between A00 aluminium and shredded aluminium tense scrap was RMB 1,070 per tonne.

These spreads continued to narrow over the week as scrap resisted declines and corporate tax burdens grew, with aluminium tense scrap series prices falling by less than wrought aluminium alloy scrap. Supply remained tight, supervision on reverse invoicing policies tightened, and production cuts or shutdowns expanded among small and medium-sized scrap utilisation enterprises in Anhui, Jiangxi, Hubei, etc., driving up the scarcity of compliant invoiced aluminium scrap.

On the import side, China’s aluminium scrap imports in May totalled 152,000 tonnes, down 10.88 per cent M-o-M and down 4.81 per cent Y-o-Y. Due to a 1-3 month shipping lag, port arrivals from June to August are expected to remain at low levels. Additionally, the UAE implemented a four-month temporary export ban on aluminium scrap starting June 3, further reinforcing expectations of tight high-quality scrap supply in Asia.

Next week, the aluminium scrap market is expected to continue consolidating at elevated levels with a slight downward bias, but downside room is limited. Shredded aluminium tense scrap (priced based on aluminium content) is expected to trade in a mainstream range of RMB 19,300-19,900 per tonne (ex-tax). The restrictive effects of the reverse invoicing policy and the lagged contraction in imported aluminium scrap continue to form bottom support, but weak off-season demand and low downstream operating rates cap the upside room. Going forward, attention should focus on the pace of policy compliance, the US-Iran peace talks and progress in Hormuz navigation, the arrival pace of overseas aluminium scrap, and changes in domestic downstream operations.

Secondary aluminium alloy: Spot market: Last Friday, China’s ADC12 market operated steadily with prices unchanged, and SMM ADC12 price held steady at RMB 23,850 per tonne from the previous day. As aluminium and cast aluminium alloy futures stopped falling and stabilised, the bearish sentiment from the sustained earlier drop eased, and the market entered a phase of wait-and-see.

Demand side, orders at downstream die-casting enterprises remain insufficient, and off-season characteristics continue to show, capping the price rise; but cost side, the difficulty of sourcing compliant aluminium scrap remains considerable, tax invoices and raw material costs stay high, squeezing profit margins of secondary aluminium enterprises, thus providing strong bottom support for ADC12 prices.

Under the weak supply-demand structure, the current market has limited momentum to further lower prices. In the short term, ADC12 prices are expected to mainly move sideways. Future attention should still be paid to aluminium price trends, changes in aluminium scrap supply, and the recovery of end-use demand.

Aluminium market summary: The US Fed’s hawkish shift boosted the US dollar index, weighing on nonferrous metals prices. The Middle East geopolitical situation showed some repetition but no deterioration signals. Under macro headwinds, aluminium prices both in and outside China fell, with bearish factors dominating in the short term and aluminium prices expected to continue in the doldrums.

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 graph: Recovery appears on June 26 as cash climbs to $3,164/t; stocks slip 0.4%

Mon, 29 Jun 2026 04:50:00 +0530

The LME aluminium price graph of June 26 reported gains after remaining on a declining graph in the previous three sessions. As cash, contracts and three-month Asian benchmark prices improved, warehouse stocks continued to decline.

The LME aluminium cash bid and offer prices gained 1.02 per cent day-on-day. The bid rose to USD 3,162 per tonne from USD 3,130 per tonne. The offer improved to USD 3,164 per tonne from USD 3,132 per tonne.

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LME aluminium three-month bid and offer prices gained 0.95 per cent. The bid climbed from USD 3,144 per tonne to USD 3,174 per tonne. Similarly, the offer price moved from 3,146 per tonne on June 25 to USD 3,176 per tonne on June 26.

On the longer-dated contracts, both the Dec-27 bid and offer prices recorded a 0.82 per cent gain over the previous session. The bid closed at USD 3,068 per tonne, climbing from USD 3,043 per tonne. Meanwhile, the offer soared to USD 3,073 per tonne from USD 3,048 per tonne.

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The LME aluminium three-month reference price closed at USD 3,179.5 per tonne on June 26, up 0.47 per cent from USD 3,164.5 per tonne on June 25.

LME aluminium stocks further dipped from 310,225 tonnes to 308,225 tonnes, down 0.37 per cent.

Live warrants remained unchanged at 247,575 tonnes.

In contrast, cancelled warrants reported a 2.47 per cent difference, slipping to 59,150 tonnes from 60,650 tonnes.

Meanwhile, LME alumina Platts jumped from USD 307.33 per tonne on June 25 to USD 310.19 per tonne on June 26, indicating a rise of 0.93 per cent.

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Southeast Asia 6063 aluminum billet market price system accelerates segmentation

Sun, 28 Jun 2026 15:28:00 +0530

With the continued expansion of aluminium processing and downstream industries in Southeast Asia, regional aluminium billet production, consumption and trade markets have attracted growing attention. Malaysia, Thailand and Vietnam are not only important aluminium billet production and consumption hubs in Southeast Asia, but also play a key role in regional aluminium billet trade flows. Markets such as Indonesia, the Philippines and Cambodia, meanwhile, are still at a stage where local processing capacity development and demand for imported aluminium billet are growing simultaneously.

Since March 2026, the escalation of geopolitical conflicts in the Middle East has caused significant disruption to the global aluminium supply chain. On the one hand, uncertainty over the supply of primary aluminium and aluminium processed products from the Middle East has increased, pushing up procurement interest in primary aluminium, aluminium billet and secondary aluminium resources across Asian markets outside China. On the other hand, fluctuations in crude oil prices and ocean freight costs have further lifted regional aluminium processing and trading costs. Against this backdrop, LME aluminium prices, Asian regional premiums and Southeast Asian local aluminium billet processing fees have all fluctuated to varying degrees.

At the same time, changes in the SHFE/LME price ratio have periodically affected the export arbitrage window for Chinese aluminium processed products. When overseas aluminium prices are stronger than domestic prices and export margins improve, Chinese aluminium processed products and some processing-trade resources show greater willingness to flow into the Southeast Asian market, creating certain disruptions to local billet supply-demand dynamics and quotations. When the price spread narrows, however, regional pricing returns to a framework driven jointly by local supply, imports from the Middle East and other overseas resources.

Trade flows

From the perspective of export destinations, the flow of Southeast Asian products under HS760120 is relatively concentrated. In 2025, the top ten export destinations for Southeast Asian HS760120 products totalled around 1.2695 million tonnes, accounting for approximately 93.3 per cent of total Southeast Asian exports. China was the largest destination, with full-year exports of around 602,100 tonnes, accounting for approximately 44.3 per cent.

Japan, Vietnam and India followed, with around 149,300 tonnes, 143,500 tonnes and 111,700 tonnes respectively, accounting for approximately 11.0 per cent, 10.5 per cent and 8.2 per cent.

It should be noted that HS760120 includes primary aluminium alloy ingots, secondary aluminium alloy ingots, other aluminium alloy billets and some cast aluminium alloy products. Therefore, this data mainly serves as a reference for observing trade flows of unwrought aluminium alloys and aluminium alloy billets in Southeast Asia, and cannot be directly equated with 6063 aluminium billet export volumes.

Entering 2026, affected by the escalation of the Middle East conflict, uncertainty in the global supply chain for primary aluminium and aluminium processed products increased, and trade flows of aluminium raw materials and aluminium billets in Asia saw certain adjustments. Data shows that total Southeast Asian HS760120 exports fell to around 88,800 tonnes in February 2026, before rebounding to around 110,700 tonnes in March and further increasing to around 116,600 tonnes in April. From February to April, cumulative growth reached approximately 31.2 per cent.

In terms of destination changes, China remained the largest export destination, although exports to China declined in April compared with March. India, South Korea, Taiwan, China and Japan showed more obvious increases from March to April.

Among them, exports to India rose from around 8,200 tonnes in February to around 15,700 tonnes in April; exports to South Korea increased from around 2,400 tonnes in February to around 10,000 tonnes in April; exports to Taiwan, China, climbed from around 1,500 tonnes in February to around 4,100 tonnes in April; while exports to Japan recovered to around 13,700 tonnes in April.

Overall, the rebound in Southeast Asian HS760120 exports from February to April 2026 reflected, on the one hand, the gradual recovery of regional trade after the Chinese New Year holiday. On the other hand, it may also have been related to Asian buyers increasing procurement of Southeast Asian regional resources and supplementing alternative supply sources after the Middle East conflict raised supply risks for overseas primary aluminium, aluminium billet and secondary aluminium.

Considering that China, India, Japan, South Korea and Taiwan, China are all important aluminium processing and consumption markets in Asia, the increase in Southeast Asian product flows to these markets indicates that regional unwrought aluminium alloys and aluminium alloy billets have played a certain supplementary and balancing role in trade during periods of supply chain disruption. For the 6063 aluminium billet market, this trend cannot be directly equated with changes in 6063 aluminium billet exports, but it can serve as an important reference for assessing the circulation activity of aluminium billets and aluminium alloy raw materials in Southeast Asia, regional substitution demand and fluctuations in processing fees.

Market and price analysis

With the continued expansion of aluminium processing and downstream enterprises in Southeast Asia, the situation of 6063 aluminium billet differs across countries due to variations in processing levels and downstream demand. Overall, Malaysia and Thailand are the main aluminium billet producing countries in the region and also have certain local consumption capacity. Vietnam’s aluminium processing capacity is growing rapidly, but some local quotations are still mainly for non-homogenised cast billets. Markets such as Cambodia and the Philippines remain at a stage where local processing capacity development coexists with demand for imported aluminium billet.

In terms of homogenisation status, mainstream 6063 aluminium billet quotations in Malaysia and Thailand usually already include homogenisation treatment, and the relevant homogenisation cost is mostly included in the aluminium billet processing fee quoted by producers. A small number of non-homogenised 6063 aluminium billet quotations also exist in the Thai market, which can be used to observe the basic processing cost of cast billets. The situation in Vietnam is different. As some enterprises mainly quote non-homogenised cast billets, the apparent processing fee for 6063 aluminium billet is usually around USD 50-100 per tonne lower than homogenised quotations in Malaysia and Thailand.

Aluminium billet homogenisation is an important heat-treatment process in the production of 6063 aluminium billets. It usually refers to placing cast aluminium billets into a homogenising furnace for heating, holding and cooling treatment, so that the internal composition distribution of the billet becomes more uniform and microstructural segregation formed during casting is improved. For 6063 aluminium billet, homogenisation helps improve stability in the subsequent extrusion process, reduce extrusion cracking, surface defects and performance fluctuations, and improve the surface quality and yield of extruded profiles. Therefore, in the aluminium extrusion value chain, homogenised aluminium billet generally has higher use value than non-homogenised cast billet.

According to SMM market research, since March 2026, under the influence of factors such as the escalation of Middle East geopolitical conflicts, tighter supply of overseas primary aluminium and aluminium billet resources, and fluctuations in energy and ocean freight costs, 6063 aluminium billet processing fees in major Southeast Asian countries rose to varying degrees. Among them, processing fees for homogenised 6063 aluminium billet in Malaysia and Thailand once increased from the previous USD 200-250 per tonne to USD 250-300 per tonne, with some high-end quotations even exceeding USD 300 per tonne during the peak period.

As the Middle East situation eased periodically in mid-June, 6063 aluminium billet processing fees in Malaysia and Thailand declined. At present, mainstream 6063 aluminium billet processing fees in Malaysia have stabilised at around USD 250 per tonne, and mainstream processing fees for homogenised aluminium billet in Thailand have also stabilised at around USD 250 per tonne. However, due to differences in raw material structure, product status and quotation basis among enterprises, processing fees still show a wide range. In Thailand, some 6063 aluminium billet processing fees have fallen to as low as around USD 100-150 per tonne. In Vietnam, from March to June, 6063 aluminium billet processing fees rose from the previous USD 150-200 per tonne to USD 200-250 per tonne, before falling back to around USD 200 per tonne in mid-June.

In addition, from the perspective of the imported aluminium billet arrival market, from May to June, SMM learned that CIF Thailand and Malaysia 6063 aluminium billet premiums/discounts were mostly around a premium of USD 100 per tonne, while some low-priced resources even fell to a discount of around USD 100 per tonne. These resources were mainly 6063 aluminium billets processed in China under processing trade and then re-exported to the Southeast Asian market. Amid cost advantages and an increase in cargo inflows at certain stages, these resources exerted some impact on the local aluminium billet market in Southeast Asia.

From March to April, affected by Middle East geopolitical conflicts, uncertainty over some Middle Eastern aluminium supply increased. Asian buyers in India, Japan, South Korea and Taiwan, China showed higher interest in Southeast Asian aluminium billets and related aluminium alloy resources, driving some Southeast Asian aluminium billet resources to flow out of the region and supporting stronger regional quotations. However, entering May and June, as Chinese aluminium billets flowed into markets such as Thailand and Malaysia through processing trade and re-export channels, competition pressure faced by local Southeast Asian aluminium billet plants increased. SMM research shows that sales pressure for some 6063 aluminium billet producers in Malaysia and Thailand has increased compared with earlier levels, and low-priced imported arrival resources have put certain downward pressure on local ex-works processing fees and the transaction price centre.

Outlook for Southeast Asian aluminium processing

Looking ahead, the Southeast Asian 6063 aluminium billet market will continue to evolve around regional processing capacity expansion, import substitution, changes in raw material structure and overseas low-carbon requirements. In the short term, Malaysia, Thailand and Vietnam will remain the core markets for 6063 aluminium billet production and consumption in Southeast Asia. Malaysia and Thailand have relatively mature local billet casting and homogenisation capacity, and their pricing systems are closer to a quotation logic based on “LME + regional premium + homogenised processing fee.” Vietnam, meanwhile, still has room for growth in aluminium billet demand as aluminium extrusion and downstream processing capacity improve, but the quotation basis for homogenised and non-homogenised products still needs to be further differentiated.

Although local sample coverage in markets such as Indonesia, the Philippines and Cambodia remains limited at present, with the advancement of local aluminium processing projects, future demand for imported aluminium billet, secondary aluminium billet and intra-regional trade flows will remain worth monitoring.

In the medium to long term, CBAM and overseas customers’ low-carbon procurement requirements may further drive segmentation in the price system of the Southeast Asian aluminium value chain. For the Southeast Asian aluminium billet market, the impact of CBAM may not necessarily be directly reflected through large-scale exports of aluminium billet itself to Europe, but may instead be transmitted through the export value chain of aluminium profiles, window and door profiles, industrial profiles and other deep-processed products.

In the future, when European customers procure aluminium processed products from Southeast Asia, they may pay greater attention to raw material sources, the ratio of primary aluminium, in-house new scrap and aluminium scrap, carbon emission data during production, supply chain traceability and third-party verification capability. Against this backdrop, enterprises with stable homogenisation capacity, clear raw material structures, the ability to provide emissions data and low-carbon material options may gain stronger advantages in securing export orders and price negotiations.

From the perspective of the price system, CBAM may not immediately drive a one-sided increase in Southeast Asian 6063 aluminium billet processing fees, but it will raise market requirements for differentiating “product status” and “raw material attributes.” In the future, price spreads between liquid aluminium direct-cast billets, remelted aluminium ingot billets, and remelted aluminium scrap billets, price spreads between homogenised and non-homogenised aluminium billets, and differences between CIF imported aluminium billet premiums and local ex-works processing fees are all expected to become key areas of market attention.

As the aluminium processing industry in Southeast Asia continues to expand, the 6063 aluminium billet market may gradually develop from relatively broad trade quotations in the past toward a more segmented price system differentiated by country, alloy grade, homogenisation status, raw material attribute and trade term.

SMM Price Points

Against the backdrop of regional processing expansion and low-carbon trends, Southeast Asian 6063 aluminium billet processing fees have gradually become one of the key price indicators followed by the market. To help enterprises better track price changes in the Southeast Asian 6063 aluminium billet market, SMM, after market research and improvement of its pricing methodology, will add a series of Southeast Asian 6063 aluminium billet processing fee, calculated reference price and CIF premium/discount price points starting from 3rd July 2026 (Friday) onward for market reference.

The Southeast Asian 6063 Aluminium Billet Premium price points will be updated on a weekly basis every Friday at 12:00 noon Kuala Lumpur time, Malaysia, which is the same as Beijing time, GMT+8. Due to differences in settlement methods among enterprises, the full aluminium billet price may vary. For reference, it can be estimated using the following formula: 【LME Official Cash Settlement Price + Quarterly MJP + 6063 Aluminium Billet Processing Fee】. Details of the relevant price points are as follows:

Cambodia 6063 Aluminium Billet (Homogenised) Premium, ex-works Cambodia, USD/tonne
Malaysia 6063 Aluminium Billet (Homogenised) Premium, ex-works Malaysia, USD/tonne
Thailand 6063 Aluminium Billet (Homogenised) Premium, ex-works Thailand, USD/tonne
Thailand 6063 Aluminium Billet (Non-homogenised) Premium, ex-works Thailand, USD/tonne
Vietnam 6063 Aluminium Billet (Non-homogenised) Premium, ex-works Vietnam, USD/tonne

The SMM Southeast Asian 6063 aluminium billet price points will be updated on a daily basis every working day at 12:00 noon Kuala Lumpur time, Malaysia, which is the same as Beijing time, GMT+8. The SMM calculated reference price will be derived using the formula: 【LME Official Cash Settlement Price (D-1) + Quarterly MJP + Latest 6063 Aluminium Billet Processing Fee】. Based on this, SMM will publish low-end, high-end and average calculated reference prices. Details of the relevant price points are as follows:

SMM Cambodia 6063 Aluminium Billet (Homogenised), ex-works Cambodia, USD/tonne
SMM Malaysia 6063 Aluminium Billet (Homogenised), ex-works Malaysia, USD/tonne
SMM Thailand 6063 Aluminium Billet (Homogenised), ex-works Thailand, USD/tonne
SMM Thailand 6063 Aluminium Billet (Non-homogenised), ex-works Thailand, USD/tonne
SMM Vietnam 6063 Aluminium Billet (Non-homogenised), ex-works Vietnam, USD/tonne

At the same time, to provide a reference comparison for the Southeast Asian 6063 aluminium billet processing and trading market, SMM will also launch CIF Southeast Asia 6063 Aluminium Billet Premium price points for market reference. The CIF Southeast Asia 6063 aluminium billet premium/discount price points will be updated on a weekly basis every Friday at 12:00 noon Kuala Lumpur time, Malaysia, which is the same as Beijing time, GMT+8. Due to differences in settlement methods among enterprises, the full imported aluminium billet price may vary. For reference, it can be settled using the following formula: 【LME Official Cash Settlement Price + Quarterly MJP + 6063 Aluminium Billet Premium/Discount】. Details of the relevant price points are as follows:

CIF Thailand 6063 Aluminium Billet (Non-homogenised) Premium

Summary

Overall, the Southeast Asian 6063 aluminium billet market is currently at a stage where regional processing capacity expansion, trade flow adjustments and price system segmentation are taking place simultaneously. In the short term, Middle East geopolitical conflicts, changes in overseas primary aluminium and aluminium billet supply, and fluctuations in energy and ocean freight costs will continue to affect Southeast Asian aluminium billet processing fees and import premiums/discounts. At the same time, changes in the SHFE/LME price ratio will also continue to periodically affect the willingness of Chinese aluminium processed products and related aluminium billet resources to flow into the Southeast Asian market.

From the perspective of market structure, Malaysia, Thailand and Vietnam remain the core markets for 6063 aluminium billet production, consumption and trade circulation in Southeast Asia. Among them, Malaysia and Thailand have relatively mature pricing systems for homogenised aluminium billet, while Vietnam still requires separate differentiation in price basis due to the relatively high share of non-homogenised cast billet quotations. Going forward, as local processing capacity develops in markets such as Indonesia, the Philippines and Cambodia, changes in regional imported aluminium billet, secondary aluminium billet and local processing fees will also become areas worth continuous tracking.

In the medium to long term, CBAM and overseas low-carbon procurement requirements will further increase the importance attached by the Southeast Asian aluminium processing value chain to raw material structure, homogenisation capability, carbon emission data and supply chain traceability. Although CBAM may not necessarily drive an immediate one-sided increase in 6063 aluminium billet processing fees, it will prompt the market to more clearly distinguish between different product bases, including liquid aluminium direct-cast billets, remelted aluminium ingot billets, remelted aluminium scrap billets, as well as homogenised and non-homogenised products.

Against this backdrop, the launch of SMM Southeast Asia 6063 aluminium billet processing fee, calculated reference price and CIF premium/discount price points will help the market more clearly track changes in regional aluminium billet costs, import substitution space, trade flow adjustments and price differentiation trends under the low-carbon transition.

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.

Aluminium processing rates fall to 63 per cent amid seasonal slump and export woes

Sat, 27 Jun 2026 00:35:00 +0530

This week, the operating rate at China's leading downstream aluminium processing enterprises came in at 63 per cent, down 0.4 percentage points M-o-M. Weighed down by the deepening seasonal off-season across the sector, downstream purchase willingness was broadly subdued, and operating rates across most segments remained under pressure.

Primary aluminium alloy held steady at 59.4 per cent, as enterprises mainly focused on executing existing long-term contracts, with no release of new spot orders. The aluminium plate/sheet and strip operating rate fell 0.6 percentage points to 70.6 per cent, as an abrupt slump in aluminium prices disrupted cargo pick-up pace, forcing some small plants to halt production. While exports showed resilience, weak domestic common plate demand offered limited offsets.

The aluminium wire and cable operating rate was flat at 69.4 per cent, supported by the steady delivery of UHV orders. However, export losses and shrinking new orders signalled increasing downward pressure after July. Aluminium extrusion operating rates edged down 0.3 percentage points to 54.4 per cent. Falling aluminium prices marginally improved end-user stockpiling, but sluggish order-taking at small and medium-sized enterprises and the persistent off-season in architectural extrusions meant these positives were insufficient to offset the weakness.

Aluminium foil operating rates slipped 0.5 percentage points to 72.1 per cent, with pharmaceutical foil demand halving and pouch foil weakening. Some clients introduced intermittent holidays, intensifying operational pressure. Secondary aluminium operating rates dropped 0.9 percentage points to 52.3 per cent, as tight invoice sourcing, aluminium scrap suppliers holding back from selling, and downstream just-in-time restocking combined to push operating rates lower under dual pressure from raw materials and demand.

Overall, the resonance between wild swings in aluminium prices and the off-season effect meant that local resilience in exports was not enough to offset weakening domestic demand and raw material-side pressure. In the short term, aluminium wire and cable is expected to fluctuate at highs, supported by power grid orders, while other segments will likely remain under pressure.

Primary Aluminium Alloy: This week, the operating rate at China's leading primary aluminium alloy enterprises held steady at 59.4 per cent, flat with the previous week, continuing its stable trend. On the supply side, enterprises did not make notable adjustments to their production pace, focusing mainly on executing existing long-term contracts.

No large-scale plans to increase or cut production were reported, leaving the operating rate unchanged for two consecutive weeks. On the demand side, the industry is currently in its traditional off-season, with downstream consumption generally weak and new orders relatively limited. Some enterprises still face certain inventory pressure.

Although aluminium prices weakened somewhat recently, market reactions were mainly reflected in trader quotes, as downstream actual purchase willingness did not notably release, offering limited boost to operating rates. Furthermore, on the export front, wheel hub exports fell MoM in May, and overall demand in June is expected to show a lacklustre performance, suggesting insufficient support from overseas demand. Taken together, the current operating level at industry leaders is sufficient to cover the delivery of existing orders. Constrained by weak off-season demand, not-yet-fully-digested inventory, and lacklustre exports, the operating rate lacks upward drivers.

The leading primary aluminium alloy enterprises' operating rate is expected to remain near 59.4 per cent next week, continuing its weak but stable trend.

Aluminium plate/sheet and strip: This week, the operating rate at leading aluminium plate/sheet and strip enterprises fell 0.6 percentage points MoM to 70.6 per cent. In terms of corporate operations, aluminium prices plummeted during the week, with spot aluminium closing at RMB 22,850 per tonne on June 25, down RMB 1,020 per tonne for the week.

The wild swings significantly impacted market sentiment, markedly weakening downstream willingness to pick up goods, and some clients, including small sheet/plate plants and workshop-style enterprises, were forced to halt production. Regarding orders, exports remained resilient. Aluminium plate/sheet and strip exports in May were 319,900 tonnes, edging down 2 per cent M-o-M but still recording a 15 per cent YoY increase, and the export order books at related enterprises were full.

Domestic demand was mediocre, with end-use demand for common civil plate remaining persistently weak. Overall, while exports and energy storage orders provide some support, the arrival of the consumption off-season, weak common plate performance, and wild swings in aluminium prices disrupting downstream procurement pace mean the aluminium plate/sheet and strip operating rate is expected to fall under pressure in July.

Aluminium wire and cable: This week, the operating rate in China's aluminium wire and cable industry was 69.4 per cent, flat MoM. Sector operations hovered at highs during the week, with enterprises primarily executing orders on hand, maintaining a stable production schedule pace, and keeping capacity utilisation rates at relatively high annual levels.

On the order side, the export market showed a clear cooling trend. Influenced by successive drops in overseas LME aluminium, export profits for domestic aluminium stranded wire moved into losses, and new order volumes shrank significantly, leaving only some orders placed in advance by traders aiming to lock in the price spread between Chinese and overseas markets.

Although producers' existing production schedules can still cover output for the entire month, and aluminium stranded wire exports are expected to remain stable in June, after July, as previously scheduled orders are gradually delivered and new orders become hard to secure—on the domestic front, long-cycle UHV orders are still being delivered steadily, but a period of concentrated cargo pick-up by the power grid has yet to emerge.

However, the sharp drop in raw material prices recently led enterprises to focus on facilitating pending production orders, providing some support for conductor-type orders. Against a backdrop of rising expectations of subsequent pressure on the export front, the sector's short-term operating rate may fluctuate at highs, but after July, as export orders gradually contract, downward pressure on the operating rate will likely increase.

Aluminium extrusion: This week, the aluminium extrusion operating rate edged down 0.3 percentage points M-o-M to 54.4 per cent, with the sector's downward pace slowing compared to the prior period. In architectural extrusions, benefiting from the recent pullback in aluminium prices, downstream end-user procurement and stockpiling willingness marginally improved, with new valid orders partially offsetting the off-season characteristics and supporting stable operating rates at architectural extrusion enterprises.

In industrial extrusions, improving downstream demand for energy storage-related aluminium extrusions boosted enterprise operations. However, some enterprises reported a short-term shortage of front-line production labour, limiting capacity release and leading to a slight pullback in operating rates. The divergence between large and small enterprises persisted, with some small enterprises reporting a notable decline in recently received new orders and expecting their production to fall M-o-M in July.

Overall, the recent aluminium price decline effectively spurred end-use demand release, providing short-term positive support for the sector’s operations. However, sluggish order-taking at small and medium-sized extrusion enterprises continued to drag on the overall operating level; meanwhile, the traditional off-season effect for architectural extrusions persisted, with weak follow-through of new orders from real estate projects, leaving thin demand support.

In conclusion, short-term positive factors were not enough to offset weak off-season demand, and China's aluminium extrusion industry operating rate is expected to continue its downtrend next week.

Aluminium foil: The operating rate of leading aluminium foil enterprises fell 0.5 percentage points MoM to 72.1 per cent this week. At the enterprise operation level, the traditional July-August off-season effect accelerated, with pharmaceutical foil demand halving and pouch foil demand continuing to weaken. Some aluminium foil clients have started taking intermittent holidays due to insufficient orders, and industry operational pressure has clearly intensified. On the export side, customs data show aluminium foil exports in May were 119,400 tonnes, up 4 per cent M-o-M, indicating relatively stable overseas demand.

Notably, the sharp drop in aluminium prices this week significantly disrupted market mentality. Downstream clients showed markedly insufficient willingness to pick up goods, and processing enterprises began reviewing their order structures and postponing production schedules for stockpiling-type orders.

Against the backdrop of a deepening off-season effect in July, persistently weakening packaging foil, insufficient support from air-conditioner foil consumption, and wild swings in aluminium prices are expected to jointly suppress operating performance, causing the aluminium foil operating rate to continue declining.

Secondary aluminium: This week, the operating rate at leading secondary aluminium enterprises fell 0.9 percentage points MoM to 52.3 per cent, as dual pressure from raw materials and demand continued to constrain capacity release.

On the raw material side, accelerating declines in aluminium prices and futures during the week caused aluminium scrap prices to follow suit, easing the way for ADC12 prices to pull back, but overall, aluminium scrap still showed relatively strong resistance to declines. Against the backdrop of a strict crackdown on the "invoicing economy," the issue of tight invoice sourcing has yet to ease, keeping procurement costs for compliant raw materials high. Meanwhile, the price decline further squeezed profits for aluminium scrap suppliers, intensifying their willingness to hold back from selling.

On the demand side, the downstream market sustained its traditional off-season pattern, with procurement dominated by just-in-time restocking. Although aluminium prices fell successively, this failed to boost downstream restocking enthusiasm. A wait-and-see sentiment dominated the market; overall transactions were mediocre, and the demand side provided limited impetus for production.

Looking ahead, if the tight invoice sourcing situation persists, compliance supervision remains stringent, and the end-use off-season effect further unfolds, there is still potential for the secondary aluminium industry's operating rate to continue declining.

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.

Aluminium futures fell for consecutive days, trading atmosphere sluggish

Fri, 26 Jun 2026 11:05:00 +0530

During morning trading, the centre of SHFE aluminium 2606 contract was higher than the same period of the previous trading day. Impacted by the rise in aluminium prices and yesterday's restocking, overall procurement sentiment weakened today.

However, supported by sellers' willingness to hold prices firm at recent lows, transaction and offer prices moved higher. Mainstream transactions were at a discount of RMB -10~0 per tonne against the SHFE aluminium July contract.

In east China today, the selling sentiment index was 3.14, up 0.25 from the previous day; procurement sentiment index was 3.00, down 0.16 from the previous day. Futures aluminium prices fell for consecutive days, leaving trading sentiment in central China sluggish, with strong bearish sentiment and limited stockpiling willingness on Friday.

Downstream processing enterprises preferred warrant or long-term contract transactions, leading to large inflows of warrants and weak inclination among suppliers to hold prices firm, pushing transaction prices continuously lower.

Eventually, the actual transaction price range in central China was around a discount of RMB 10-40 per tonne against the SHFE aluminium July contract. Today's central China selling sentiment index was 2.90, up 0.01 from the previous day; procurement sentiment index was 2.14, flat from the previous day. On the inventory front, aluminium ingot inventories in major consumption regions fell 19,000 tonnes W-o-W today, with destocking observed in all three regions.

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.

Macro headwinds dominate futures, Shanghai and LME aluminium both remain in the doldrums

Fri, 26 Jun 2026 06:10:00 +0530

Futures: The most-traded SHFE aluminium 2608 contract closed at RMB 22,935 per tonne, down RMB 40 or 0.17 per cent from the previous settlement price. It opened at RMB 22,950 per tonne and fluctuated between RMB 22,810 and 23,030 per tonne.

The price is trading below the MA5 (23,389.00), MA10 (23,726.50), MA30 (24,192.17), and MA60 (24,529.08) moving averages. The short- and medium-term moving averages are in a bearish alignment and gradually pressing lower, highlighting a structure notably in the doldrums, with the various timeframe moving averages above forming layers of resistance.

The MACD indicator's DIF (-345.5331) is below the DEA (-223.1560), and the MACD green bar reading is -244.7541, indicating bearish momentum continues to be released. The recommended trading range for SHFE aluminium is RMB 22,500-23,300 per tonne. The LME aluminium 3M contract closed at USD 3,174.5 per tonne, down 0.35 per cent.

The price is trading below the MA5 (3,218.90), MA10 (3,308.40), MA30 (3,518.28), and MA60 (3,532.48) moving averages, with short- and medium-term moving averages in a bearish alignment and gradually pressing lower, and the overall structure notably in the doldrums, with moving averages above providing notable resistance.

The MACD indicator's DIF (-104.5279) is below the DEA (-66.2193), with the MACD green bar at -76.6172, as bearish momentum continues to be released, signalling persistent weakness. The recommended trading range for LME aluminium is USD 3,100-3,200 per tonne.

Macro front: Omani Foreign Minister Badr stated that future arrangements concerning the Strait of Hormuz will not involve any transit fees. Meanwhile, Iran estimates that if services such as security and environmental fees are charged for the Strait of Hormuz, it would generate USD 40 billion in annual revenue for the relevant countries.

The Islamic Revolutionary Guard Corps Navy stated that vessels transiting the Strait of Hormuz must coordinate in advance, and violators "will be dealt with." S&P Global Energy reported that the daily average Strait of Hormuz transits in June had recovered to about 57 per cent of pre-conflict levels.

New York Fed President John Williams said interest rates are in a good place to bring inflation back to the central bank's target. Williams expects inflation to slow to 3.5 per cent by year-end, then continue along a "smooth path" toward 2 per cent, reaching the target in 2028.

Fundamentals: Supply side, according to SMM data, China's aluminium production rebounded W-o-W this week, mainly driven by the production ramp-up of newly commissioned capacity and the resumption of idle capacity. The proportion of liquid aluminium rose 0.2 percentage points W-o-W, while casting ingot output further declined.

Overseas, earlier high prices spurred accelerated commissioning of new projects. As new projects are energized and ramp up production, operating aluminium capacity outside China is expected to increase further W-o-W. On the inventory front, aluminium destocking continued smoothly this week. As of Thursday, China's social inventory of aluminium ingot had fallen 50,000 tonnes W-o-W and 37,000 tonnes from Monday.

Weakening aluminium prices lifted downstream buying sentiment, helping to drive the destocking. On the export side, the SHFE/LME price ratio recovered sharply this week, rebounding to 7.29 as of June 25, up 12.2 per cent from the prior low of 6.5. Import losses narrowed to around RMB 3,400 per tonne, nearly 45 per cent narrower than the previous peak loss of RMB 7,604 per tonne.

As a result, the profit margin that had spurred substantial aluminium semis exports contracted rapidly, and new orders in some segments have declined. As orders on hand are gradually fulfilled, exports of aluminium semis face downside risks if export margins fail to recover.

Primary aluminium market: In early trading, the centre of SHFE aluminium 2606 contract prices was well below the same period in the prior trading day. As prices fell to the recent low, overall buying sentiment improved M-o-M from yesterday, lifting transaction prices.

Mainstream transactions were at a discount of RMB 20-40 per tonne against the SHFE aluminium 07 contract. In east China, the willingness-to-sell sentiment index stood at 2.90, down 0.08 W-o-W; the purchasing sentiment index stood at 3.16, up 0.34 W-o-W.

SHFE aluminium continued to tumble. In central China, suppliers showed low willingness to sell, and traders tended to offer substantial volumes of spot warrants with limited intention to hold prices firm. Downstream processing enterprises displayed weak buying sentiment, making only limited just-in-time procurement, mainly of warrants, with few spot transactions.

The central China market eventually saw transaction prices centred around a discount of RMB 20-50 per tonne against the SHFE aluminium 07 contract. The willingness-to-sell sentiment index in central China was 2.89, down 0.04 W-o-W; the purchasing sentiment index was 2.14, down 0.06 W-o-W.

Aluminium scrap: SMM A00 spot aluminium closed at RMB 22,850 per tonne yesterday, plunging RMB 620 per tonne M-o-M from the prior trading day. Aluminum scrap moved lower in sympathy but limited losses due to significant cost support.

On the price difference front, on June 25, the price difference between A00 aluminium and mixed aluminium extrusion scrap free of paint in Foshan stood at RMB 2,137 per tonne, while that between A00 aluminium and shredded aluminium tense scrap stood at RMB 1,160 per tonne.

Both narrowed over the week amid sustained resistance from aluminium scrap prices and a rising tax burden on enterprises, with tense scrap declining less than wrought aluminium scrap. Supply remained tight, and scrutiny of reverse-invoicing policies intensified. Production cuts and halts spread among medium- and small-sized scrap utilization enterprises in Anhui, Jiangxi, and Hubei, increasing the scarcity of compliant, invoiced aluminium scrap.

On the import side, China's aluminium scrap imports totalled 152,000 tonnes in May, down 10.88 per cent M-o-M and 4.81 per cent Y-o-Y. Given the 1-3 month shipping lag, port arrivals from June to August are expected to remain low. In addition, the UAE imposed a four-month temporary ban on aluminium scrap exports starting from June 3, further intensifying the expectation of tightening supply of high-quality scrap in the Asian region. The demand side shows clear off-season characteristics, with enterprises having maintained strategies of purchasing as needed and keeping low inventory.

The aluminium scrap market is expected to remain in the doldrums at high levels next week, but with limited downside room; the mainstream price range for shredded aluminium tense scrap (priced based on aluminium content) is expected to run at RMB 19,300—19,900 per tonne (tax-excluded).

The reverse invoicing policy constraints and the lagged contraction in aluminium scrap imports continue to provide bottom support, but weak off-season demand and low downstream operating rates are capping the upside room. Future attention should be paid to the pace of policy compliance, progress in US-Iran peace talks and the Strait of Hormuz shipping, the arrival pace of aluminium scrap from outside China, and changes in downstream operating rates within China.

Secondary aluminium alloy: Yesterday, mainstream ADC12 enterprise quotes were generally reduced by RMB 100—200 per tonne, with the SMM ADC12 price dropping by RMB 150 per tonne from the previous day to RMB 23,850 per tonne. Under the continuous price decline, downstream client purchasing enthusiasm did not significantly improve; downstream purchases remained primarily just-in-time procurement, with strong wait-and-see sentiment and insufficient restocking willingness.

Meanwhile, aluminium scrap prices were relatively firm, especially as compliant raw material supply remained tight; the price decline further squeezed aluminium scrap supplier profits, leading to increased reluctance to sell and affecting raw material circulation to some extent. Under the ongoing constraints of the "reverse invoicing" policy, industry compliance cost pressure has not yet been alleviated, and enterprises still face significant production and operational pressure.

In the short term, the market will still be dominated by cautious wait-and-see and just-in-time procurement, with future attention needed on the aluminium price trend, changes in aluminium scrap supply, and downstream order recovery.

Aluminium market summary: The US Fed's hawkish pivot boosted the US dollar index, weighing on non-ferrous metal prices. Geopolitical tensions in the Middle East showed some volatility but with no signs of deterioration. Under macro headwinds, aluminium prices fell in and outside China. In the short term, bearish factors are dominant, and aluminium prices are expected to remain in the doldrums. Continuous monitoring is needed on Middle East production resumption news, overseas aluminium ingot inventory trends, and macro news fluctuations.

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 graph: Aluminium prices ease further as exchange inventories continue to decline

Fri, 26 Jun 2026 05:30:00 +0530

LME aluminium prices edged lower on June 25 compared with June 24, with both cash and three-month contracts recording modest declines. Meanwhile, LME warehouse stocks continued to fall, while live warrants remained unchanged.

The LME cash bid price slipped to USD 3,130 per tonne on June 25 from USD 3,148 per tonne on June 24, marking a decline of 0.57 per cent. The cash offer price also eased by 0.57 per cent to USD 3,132 per tonne from USD 3,150 per tonne.

Three-month aluminium prices followed a similar trend. The three-month bid fell from USD 3,160 per tonne to USD 3,144 per tonne, representing a decrease of 0.51 per cent, while the offer price declined from USD 3,160.50 per tonne to USD 3,146 per tonne, down 0.46 per cent.

Longer-dated contracts moved slightly higher. The December 2027 bid increased from USD 3,038 per tonne to USD 3,043 per tonne, while the offer price rose from USD 3,043 per tonne to USD 3,048 per tonne, with both recording an increase of around 0.16 per cent.

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In contrast, the Asian reference price climbed to USD 3,164.50 per tonne on June 25 from USD 3,122.50 per tonne a day earlier, reflecting an increase of 1.35 per cent.

LME aluminium inventories continued their downward trend. Opening stocks fell by 1,500 tonnes to 310,225 tonnes from 311,725 tonnes, a decline of 0.48 per cent. Live warrants remained unchanged at 247,575 tonnes.

Meanwhile, cancelled warrants decreased to 60,650 tonnes from 62,650 tonnes, marking a drop of 3.19 per cent.

The LME alumina Platts price remained unchanged at USD 307.33 per tonne, indicating stability in the alumina market despite the softer movement in aluminium prices.

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UK commits $66m to critical minerals sector, reinforcing aluminium's strategic role

Thu, 25 Jun 2026 13:30:00 +0530

The UK government has announced a GBP 50 million (USD 66 million) investment to strengthen domestic production of critical minerals, as it seeks to reduce reliance on concentrated global supply chains and improve economic resilience. The funding is also expected to support sectors such as aluminium, which was added to the UK's Critical Minerals Strategy in 2024.

The funding will support projects covering mineral extraction, processing and recycling to secure supplies of materials used in products ranging from smartphones and household appliances to electric vehicle batteries. The latest allocation builds on more than GBP 200 million already committed to the sector.

Industry Minister Chris McDonald is expected to launch the programme during a visit to an industrial research hub in northeast England, where companies are developing technologies for metal recovery and processing.

The announcement comes as the UK intensifies efforts to secure critical mineral supplies amid rising global demand and China's continued dominance of the sector. China accounts for around 70 per cent of global rare earth mining and about 90 per cent of rare earth refining.

The government's recent efforts also include the opening of the UK's first commercial rare earth magnet plant in 25 years. Operated by Mkango Resources' HyProMag unit in Birmingham, the facility uses recycled materials to manufacture magnets for electric motors and other technologies.

The UK has also expanded cooperation with countries including the United States and South Korea to diversify access to critical minerals through partnerships focused on supply chains, processing capacity and investment.

The new funding package will be distributed across three areas, including GBP 20 million for a rare earth magnet hub, GBP 25 million for an accelerator programme to help scale projects, and up to GBP 5 million for a platform designed to aggregate industry demand and attract private investment.

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Aluminium recognised as a strategic mineral

In 2024, aluminium was formally added to the UK's Critical Minerals Strategy and designated as both a Critical Mineral and a Growth Mineral under the Government's Vision 2035 framework.

The decision followed several years of engagement between the Aluminium Federation (ALFED), government departments and industry stakeholders, with ALFED advocating aluminium's inclusion because of its importance to UK manufacturing, national resilience, economic growth and supply chain security.

ALFED said the government's latest investment package highlights the need to strengthen domestic capability while increasing investment in recycling and processing infrastructure. The organisation noted that critical minerals policy has traditionally focused on mining and primary production, but argued that recycling, remelting and secondary material processing should also play a central role in the UK's long-term resource security strategy.

According to ALFED, expanding domestic recovery, processing and remanufacturing capacity would reduce reliance on imports, improve supply chain resilience and retain greater economic value within the UK. The federation also highlighted that aluminium can be recycled repeatedly without losing performance, while recycled aluminium requires only around 5 per cent of the energy needed to produce primary aluminium.

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ALFED outlines priorities for future policy

Looking ahead, ALFED said it will continue to advocate for greater recognition of recycling and secondary materials as strategic sources of supply. The federation is also calling for increased investment in UK recycling, remelting, sorting and advanced processing capacity, along with policies that promote domestic value retention and circular manufacturing.

ALFED also wants greater recognition of aluminium's role in defence, infrastructure, the energy transition and industrial resilience. In addition, it is seeking closer alignment between critical minerals policy, industrial strategy, trade policy and manufacturing competitiveness, as well as continued support for innovation and investment across the aluminium value chain.

Mine to Market: More than a magazine, a steering partner to surf through volatility with peers from across the aluminium value-chain

Thu, 25 Jun 2026 11:57:00 +0530

Aluminium, the silvery metal powering homes, industries and enabling humans to fly and sail, has a gripping tale of its mine to market journey. It is extracted after multiple refining processes from the reddish-brown ore. The ore is refined to the powdery white substance Aluminium oxide, commonly known as alumina, to the silvery slabs, billets and ingots, etc., which are then broken into various shapes and sizes for specific consumer markets.

The global aluminium industry employs approximately 7.5 million people directly and indirectly. Apart from the modern world’s mobility, defence, infrastructures and sustainable packaging depending upon aluminium, these people’s livelihoods depend on the metal’s journey from mine to market, too.

It is important to mention here that aluminium plays a notable role in the world economy. The primary metal might contribute what seems to be a mere 1.2-1.3 per cent to the global GDP according to its price, but the journey doesn’t end with aluminium production. The automobiles manufactured, the defence mechanisms developed, and the infrastructural advancements by any country have the mine to market journey of aluminium written all over them.

Many of those who partake in flourishing the industry, such as FIMI Machineries, Calderys, Glasspoint, along with globally recognised associations and event organisers like The Aluminium Association, ALU Arabia. ALU China and Aluminium Dussledorf have come together to voice their stance about the global aluminium industry's present and potential future.

There are by-products along every step of the journey. But those by-products once regarded as waste are increasingly being recognised as strategic resources. All that red mud, dross, even scrap has great value to them. Rare earth can be extracted from the alumina refining by-product red mud, whereas dross has the potential to yield a new batch of aluminium as well as generating further by-products such as alumina-rich residues, salts and soda ash, which are utilised in industries like cement, refractory, and chemicals.

Ammar Awach, CEO, TAHA International, has rightly shared through his interview, “Dross remains one of the industry’s most underutilised resources. Every tonne of aluminium recovered from dross reduces the need for additional primary production and the associated energy consumption and carbon emissions.”

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But with all that positivity in mind, we know that it is not all hunky dory. For the past few years, the value chain has faced one speed-breaker after another, the most recent one being Strait of Hormuz disruption.

In the magazine "Mine to Market: ALuminium Producers & Manufacturers 2026”, an exclusive article by Kelly Thomas, President & CEO, Vista Metals, states, “The effective closure of the strait, combined with Iranian missile strikes on major Gulf smelting facilities, including Emirates Global Aluminium and Aluminium Bahrain, removed an estimated 3 per cent of global aluminium supply from the market almost overnight. London Metal Exchange aluminium prices surged approximately 19 per cent year-to-date through May 2026 as a result.”

Despite these headwinds, the global market size is projected to reach USD 355 billion by 2030, with a CAGR of 4.8 per cent. The market moves towards a strong demand led by vehicle lightweighting, urban infrastructure expansion, and increased usage in energy-efficient applications.

The "Mine to Market: ALuminium Producers & Manufacturers 2026" magazine's digital version is now available for download on AL Circle's website.

RUSAL’s first aluminium smelter fully transitions to modern Russian gas cleaning systems

Thu, 25 Jun 2026 13:30:00 +0530

RUSAL’s Irkutsk Aluminium Smelter (IrkAZ) has become the first aluminium plant in the industry to fully transition to modern Russian gas cleaning systems. Investments in the project amounted to approximately USD 40 million. RUSAL developed the gas cleaning units. The company's proprietary solution not only outperforms foreign counterparts but also delivers efficiency over ten times higher than previous-generation gas cleaning systems.

The Irkutsk Aluminium Smelter has commissioned its sixth RUSAL Dry Gas Treatment Unit (DGTU), making it the first in the industry to fully adopt modern Russian gas cleaning technology. RUSAL’s Engineering Department developed the technology and equipment for these units in-house.

RUSAL considers the modernisation of dry gas treatment systems at its aluminium smelters to be one of its most significant environmental initiatives, aiming to reduce the industry’s environmental footprint. Previously, the company relied on the best Western technologies for modernisation. In 2016, RUSAL decided to develop its own solution.

By 2018, it had already begun supplying RUSAL DGTUs to its aluminium smelters. These units are more effective and reliable than foreign counterparts and outperform previous-generation technologies by an order of magnitude.

Construction of the Russian-made units at IrkAZ began in 2018. Investments in the six units, automated raw material transportation systems, and related gas treatment infrastructure totalled approximately USD 40 million. RUSAL is also installing DGTUs at the Bratsk and Novokuznetsk Aluminium Smelters.

RUSAL DGTUs capture more than 99.5 per cent of fluoride compounds, dust, and tar substances contained in electrolytic gases. By comparison, the electrostatic precipitators used before the modernisation captured up to 95 per cent of these substances.

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As a result, the modern units are over ten times more efficient than previous-generation filters. The new units also return the captured fluoride, a valuable raw material for electrolysis, together with alumina, back into the production process.

RUSAL’s proprietary state-of-the-art equipment costs 30 per cent to 40 per cent less than the best Western alternatives due to a 50 per cent smaller installation footprint, a 40 per cent reduction in metal consumption, fewer modules and equipment units, and a range of other technical optimisation solutions.

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