AlCircle: Latest primaryaluminium news update

Maaden secures $1b in oversubscribed financing as Saudi mining push accelerates

Sat, 29 Aug 2026 05:30:00 +0530

Saudi Arabian Mining Co. (Maaden) has secured USD 1 billion in inaugural international syndicated credit facilities, with strong demand from global lenders highlighting confidence in the company's expansion strategy and Saudi Arabia's broader mining ambitions.

Maaden has secured USD 1 billion in international credit facilities as the Saudi mining giant looks to expand its operations and capture opportunities created by the Kingdom's rapidly developing mining sector.

The financing was significantly oversubscribed, attracting participation from leading international banks across the US, Canada, Europe, China and Japan.

The strong demand gives Maaden broader access to international sources of capital while signalling lender confidence in the company's financial position, strategic direction and long-term growth plans.

The transaction comprises a USD 500 million international term loan and a USD 500 million international revolving credit facility.

Financing to support Maaden's expansion

The term loan will support Maaden's growth strategy and general corporate purposes, including the financing of expansion projects across its portfolio.

The revolving credit facility, meanwhile, is expected to remain undrawn and will provide additional committed funding capacity as the company expands its operations and advances its longer-term projects.

Bob Wilt, CEO of Maaden, said the strong demand for the facilities reflected international financial institutions' confidence in the company's strategy.

“The strong international demand for these facilities reflects the confidence global financial institutions have in Maaden, our strategy and our long-term growth ambitions,” Wilt said.

He added that the financing would support Maaden's growth agenda and help the company capture opportunities emerging from Saudi Arabia's expanding mining sector.

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

Strong financial performance supports growth plans

The company recorded a 16 per cent year-on-year increase in second-quarter revenue to USD 2.9 billion, while EBITDA rose 3 per cent to USD 1 billion.

Net profit attributable to shareholders reached USD 600 million during the quarter.

The combination of stronger financial performance and expanded access to international funding gives Maaden additional capacity to advance projects across its mining portfolio.

The company said the new facilities also mark an important step in its financing strategy by diversifying its funding sources and broadening its access to global capital providers.

Saudi Arabia targets USD 2.5tn mineral wealth

Government estimates put the value of the Kingdom's mineral wealth at more than USD 2.5 trillion, creating a significant opportunity for exploration, production and downstream development.

Maaden is playing a central role in this strategy by expanding production, advancing major projects and accelerating exploration across the Kingdom. The company sees the latest financing as providing additional capacity to pursue these opportunities.

Wilt said the facilities would strengthen Maaden's ability to advance projects aimed at unlocking Saudi Arabia's mineral potential.

“They strengthen our ability to deliver projects that will unlock the Kingdom’s mineral potential and support Saudi Arabia’s Vision 2030 ambitions,” he said.

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Exploration pipeline expands

One of its planned initiatives is a joint venture with Saudi Aramco focused on copper and other minerals considered critical to the energy transition.

The proposed venture is expected to be 51 per cent owned by Maaden and 49 per cent by Aramco, bringing together the mining company's exploration capabilities with Saudi Arabia's national energy company.

The focus on copper and other critical minerals reflects the changing requirements of the global energy system, where demand for materials supporting electrification and clean-energy technologies is expected to remain an important driver of mining investment.

The deal provides fresh committed funding, strengthens its international financing network and gives the company greater financial capacity to pursue projects as Saudi Arabia seeks to turn its substantial mineral resources into a larger contributor to the national economy.

The oversubscription of the facilities also sends a broader signal: international lenders are increasingly willing to back the Kingdom's ambitions to build a larger and more diversified mining industry.

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The US needs more aluminium, but new smelters are years away

Fri, 28 Aug 2026 19:00:00 +0530

The US urgently needs more aluminium for its defence sector, but new smelters will take years to come online, while disruptions to high-purity aluminium imports have exposed a more immediate supply vulnerability.

The United States is facing a growing aluminium supply challenge that is becoming increasingly important for its defence sector, as rebuilding domestic production capacity remains a long-term process and overseas supply disruptions threaten access to specialised metal.

President Donald Trump recently said the US “desperately” needs more aluminium, highlighting the urgency facing a market that remains heavily dependent on imports despite efforts to revive domestic production.

One of the most prominent new projects is the planned aluminium smelter in Inola, Oklahoma, a joint venture between US producer Century Aluminum and Emirates Global Aluminium (EGA). The project has received USD 500 million in federal funding and is intended to strengthen US aluminium production.

But the project illustrates the problem facing the US: even if construction begins as scheduled by the end of 2026, the smelter is not expected to produce its first hot metal for at least another three years.

Pentagon faces an aluminium problem now

The urgency became clear during a US Department of Defense wargame conducted in July 2025 to examine the country's aluminium resilience in the event of a large-scale conflict in 2027.

The exercise brought together 80 participants from across the aluminium supply chain, industry associations and government departments to examine potential disruptions and policy responses.

The options included building new smelters, refurbishing existing facilities and increasing aluminium recycling. While these measures could improve the overall health of the US aluminium industry, the Defense Logistics Agency warned that none would meet the Department of Defense's shorter-term aluminium and high-purity aluminium requirements within two years.

The US can invest in new production capacity, but new facilities require years to build. Defence planners, meanwhile, need to know where their aluminium will come from if supply is disrupted during a major conflict.

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

High-purity aluminium exposes a bigger vulnerability

The most immediate concern is not necessarily ordinary aluminium, but high-purity aluminium (HPA).

The US defence sector accounts for only around 5 per cent of domestic aluminium demand, but its share is significantly higher when it comes to HPA. The specialised material, often used in alloy form, is required for some of the Pentagon's essential systems.

The US has only one domestic HPA producer, leaving the defence sector heavily reliant on imports.

A significant portion of those imports has historically come from the United Arab Emirates, making the supply chain particularly vulnerable to disruption in the Gulf.

That vulnerability became more apparent after Iran attacked EGA's Al Taweelah smelter in March. EGA has begun restoring operations, with a quarter of its electrolytic cells operational as of Wednesday, but US imports from the UAE have fallen sharply since the attack.

The Pentagon had already conducted another wargame examining potential disruptions at domestic facilities, including Alcoa's smelter in New York and Arconic's HPA plant in Iowa.

However, that exercise did not anticipate an attack on the US military's largest overseas HPA supplier.

The disruption has also complicated one of the simplest short-term solutions identified by the defence wargame: building up HPA and HPA-alloy stockpiles.

Tariffs have not closed the supply gap

Washington's 50 per cent aluminium import tariff has encouraged some domestic production to return, but the impact on overall supply has so far been limited.

Century Aluminum has restarted 50,000 tonnes per year of capacity at its Mount Holly smelter in South Carolina, bringing the facility back to full production.

Meanwhile, Magnitude 7 Metals is working to restart a 1970s-era smelter in Missouri that was closed in 2024. Its first 75,000-tonne-per-year potline is targeted for restart by the end of 2026.

Recycling is also expanding. According to the Aluminum Association, employment growth in the US aluminium recycling sector exceeded 20 per cent between 2024 and 2026.

But these developments have not eliminated the country's dependence on overseas metal.

The US remained 60 per cent dependent on aluminium imports in 2025, according to the US Geological Survey.

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US buyers are paying heavily for scarce metal

The CME Midwest Premium, the surcharge paid by US buyers on top of the London Metal Exchange aluminium price, has reached USD 2,467 per tonne.

That is around USD 850 per tonne higher than the implied level associated with a 50 per cent tariff, suggesting that US buyers are paying a substantial premium for physical aluminium amid constrained supply.

The loss of production in the Gulf has added further pressure, forcing US buyers to compete with European and Asian consumers for available metal.

In effect, tariffs may be encouraging domestic production, but they have not yet solved the fundamental problem: the US needs more aluminium than its domestic industry can currently supply.

Canada could provide a short-term answer

The Trump administration has introduced another incentive: a reduced 25 per cent import tariff for companies building, expanding or refurbishing domestic aluminium smelting capacity. Canada, however, is not expected to receive the same reduction after trade negotiations broke down and tariffs escalated.

That is significant because Canada remains the largest supplier of primary aluminium to the US market, although it has directed more of its production towards Europe in recent months.

Even if Canada redirected its entire production towards the US, however, it would not be enough to eliminate the country's aluminium shortfall, according to Morgan Stanley analysts. The marginal imported tonne would still face a 50 per cent tariff, with the Midwest Premium reflecting the additional cost.

Yet Canada could still offer something the US urgently needs: a short-term supply buffer for defence.

A memorandum of understanding between the two countries contains a special arrangement under which Canada would prioritise US defence aluminium purchases if Washington needed to rapidly increase aluminium supplies during a large-scale conflict.

That could give US defence planners an emergency option while domestic production capacity catches up.

The broader problem, however, remains unresolved. Building new smelters, reopening old facilities and expanding recycling can strengthen US aluminium security over the long term, but none can provide significant volumes overnight.

For now, the US is caught between a defence sector that needs aluminium immediately and a domestic industry whose biggest solutions are still years away. And when it comes to high-purity aluminium, recent disruption in the UAE has shown just how exposed that gap can become.

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

Century Aluminum stock jumps to $45.89, but GuruFocus flags 97% overvaluation

Fri, 28 Aug 2026 15:50:00 +0530

Century Aluminum shares rose 4.4 per cent to USD 45.89 on August 27, extending a strong 2026 rally, but GuruFocus' GF Value model puts the stock's estimated intrinsic value at just USD 23.25.

Century Aluminum Co's stock is moving in two very different directions depending on which metric you look at.

On August 27, shares of the US aluminium producer gained 4.4 per cent to USD 45.89, putting the stock up 17.1 per cent year to date and an impressive 102.2 per cent over the past year.

Yet, despite the strong momentum, GuruFocus' valuation model considers Century Aluminum considerably overvalued at its current price.

The platform's GF Value stands at USD 23.25, compared with the stock's USD 45.89 price. That represents a 97.4 per cent premium to its estimated GF Value, highlighting the gap between the market price and the model's assessment of the company's intrinsic value.

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

Strong momentum meets a valuation warning

Century Aluminum's recent share-price performance has been one of the strongest aspects of its investment profile.

The stock currently sits within a 52-week range of USD 20.91 to USD 70.43, while its 102.2 per cent one-year gain reflects substantial investor momentum.

GuruFocus' GF Score is 62 out of 100, placing Century Aluminum in the above-average category. The company's strongest individual score is its Momentum Rank of 9/10, reflecting its powerful recent share-price performance. Its Financial Strength rating stands at 7/10, suggesting a relatively solid financial position.

However, these positives are accompanied by a much weaker Valuation Rank of 1/10.

That combination creates an important distinction for investors: Century Aluminum is performing strongly in the market, but that does not necessarily mean the shares are attractively valued.

Why the low P/E does not settle the valuation question

Century Aluminum's valuation picture becomes more complicated when looking at its earnings multiple.

The stock currently trades at a trailing P/E ratio of 7.9 times, compared with a five-year median P/E of 12.8 times. That means its current P/E is around 38 per cent below its historical median, which could normally be interpreted as evidence that the stock is trading at a discount to its historical valuation.

The model incorporates factors including historical trading multiples, past business growth and future performance expectations. On that basis, it considers the current USD 45.89 share price substantially above its estimated intrinsic value of USD 23.25.

The conflicting signals illustrate why a single valuation metric may not provide the complete picture of a cyclical materials stock.

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Insider selling: Another warning signal?

According to the GuruFocus analysis, seven gurus currently hold CENX shares, with four increasing their positions and five trimming their stakes in recent quarters.

Insider activity is more concerning from the valuation perspective. Insiders reportedly sold USD 626 million worth of stock over the past 12 months, with no recent insider purchases.

While insider selling does not necessarily mean a stock is headed for a decline, the absence of recent purchases alongside substantial selling adds another cautionary signal when considered together with the company's low valuation ranking.

Financial strength offers a counterpoint

Century Aluminum's 7/10 Financial Strength rating is one of the stronger components of its GF Score, while its overall score of 62/100 places it above average compared with peers.

Its 9/10 Momentum Rank is also a clear indication that the market has been rewarding the stock, despite the concerns surrounding its valuation.

That leaves investors facing a familiar dilemma with a rapidly rising commodity stock: strong momentum can continue to push a share price higher even when valuation metrics suggest it has moved ahead of its underlying fundamentals.

For now, the market is rewarding CENX with strong momentum. GuruFocus, however, is asking whether investors have already priced in too much of the good news.

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

Vedanta Aluminium shares rise as the group denies stake-sale speculation

Fri, 28 Aug 2026 13:00:00 +0530

Vedanta Aluminium shares gained 3.32 per cent after Vedanta Resources denied speculation that it planned to sell its stake in the aluminium business, while brokerages maintained bullish views on the stock.

Vedanta Aluminium came into focus after its parent, Vedanta Resources, dismissed reports and market speculation about a possible stake sale in the company.

The clarification also covered Vedanta Limited and other group businesses, including Vedanta Oil and Gas, Vedanta Power and Vedanta Iron & Steel. Vedanta Resources said it has no plans to sell its stake in any of these companies and remains focused on growth and value creation.

The development came as both Vedanta Aluminium and Vedanta Limited recorded gains on the BSE on Wednesday.

Vedanta Aluminium shares gain after stake-sale denial

Vedanta Aluminium shares closed 3.32 per cent higher at INR 462.55 on Wednesday, giving the company a market capitalisation of around INR 1.81 trillion. The stock touched an intraday high of INR 463.95 and a low of INR 448.90 during the session. Vedanta Limited also gained 4.3 per cent, closing at INR 286.65, with a market capitalisation of approximately INR 1.12 trillion.

The gains came after Vedanta Resources clarified that there was no plan to sell stakes in its group companies, removing some of the uncertainty surrounding the speculation.

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

Brokerages remain bullish on Vedanta Aluminium

The group's clarification comes alongside positive views from analysts covering Vedanta Aluminium.

Motilal Oswal maintained a Buy rating on Vedanta Aluminium with a target price of INR 540 per share. The brokerage retained its FY28 estimates and said the stock's valuation remained attractive at 5.3 times FY28 estimated EV/EBITDA.

Emkay Global was also positive, maintaining a Buy rating and a target price of INR 550 per share. The brokerage said its valuation was supported by improving earnings visibility, cost leadership and favourable aluminium fundamentals.

With the stock closing at INR 462.55, the two target prices imply potential upside of roughly 16.7 per cent and 18.9 per cent, respectively.

Related: Vedanta Aluminium eyes next growth phase on higher volumes and lower costs

Vedanta focuses on demerger and growth

Vedanta Resources said its strategy remains centred on growth and value creation, rather than reducing its holdings through stake sales.

A major part of that strategy is the group's planned demerger into five focused businesses, alongside an ambitious growth capital expenditure pipeline, deleveraging and shareholder returns.

The demerger is intended to create more focused businesses, while the planned investment programme is expected to support expansion across the group's operations.

The company's positioning within India's growing aluminium industry remains an important part of the investment case highlighted by analysts.

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Vedanta Aluminium's outlook remains tied to aluminium fundamentals

The latest analyst calls suggest that the aluminium business continues to attract investor interest despite the recent stake-sale speculation.

Emkay Global pointed to cost leadership and favourable aluminium demand fundamentals as key factors supporting its INR 550 target, while Motilal Oswal retained its Buy view based on its FY28 valuation.

For investors, the immediate takeaway is that Vedanta Resources has ruled out a stake sale, while analysts remain constructive on Vedanta Aluminium's growth and earnings outlook.

The company's share-price performance and the brokerage targets will now provide a clearer indication of whether investor confidence can continue to build around Vedanta Aluminium's longer-term growth story.

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

Oklahoma Primary Aluminum details 99% fluoride capture plan for proposed 750,000-tonne smelter

Fri, 28 Aug 2026 09:17:00 +0530

Oklahoma Primary Aluminum has outlined the environmental controls planned for its proposed aluminium smelter at the Tulsa Port of Inola, a project that could add up to 750,000 tonnes of annual primary aluminium capacity in the United States.

The proposed facility is expected to create at least 1,000 permanent direct jobs, according to the company. It is also part of the broader effort to expand domestic aluminium manufacturing and reduce US reliance on imported primary metal, although the project remains under regulatory review.

Speaking to a media outlet, Project Director Ziad Fares addressed concerns raised about fluoride emissions and the potential impact on nearby farms and ranches. When asked about whether the proposed smelter would be safe, He commented, “Absolutely, otherwise, we're not going to be allowed to build, and we're not going to build.”

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

He said the company is working with the Oklahoma Department of Environmental Quality (DEQ) to determine the best available pollution-control technologies for the facility.

The company's initial air permit application listed a maximum total fluoride emissions rate of 1.02 pounds per tonne of aluminium produced. Fares said this figure represents a maximum permitted level rather than the facility's expected actual emissions. In his words, "That initial number that we put there will most likely be updated…This is not the actual emission level. We will actually be well below that number."

The company expects the proposed smelter to capture around 99 per cent of the fluoride used in production. The facility would use hooding systems, automation and operating procedures to limit fluoride escaping from production equipment, followed by dry and wet scrubbing systems to further reduce emissions.

Fluoride captured through the dry scrubbing process could also be returned to the production process rather than released, allowing the material to be reused.

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The proposed Inola smelter would use the latest generation of proprietary aluminium-smelting technology developed by Emirates Global Aluminium, according to Fares. He shared that the technology is currently being piloted in the United Arab Emirates and is designed to improve efficiency by using less electricity while supporting greater production within a smaller footprint.

The facility's proposed design also includes enclosed material handling, modern pollution-control equipment, continuous monitoring and digital systems designed to identify abnormal operating conditions. "The smelter will be using the best available and latest control technologies to ensure that the environmental impact of that activity is reduced to the extent possible."

Environmental modelling will form part of the permitting process. According to Fares, the modelling will consider proposed emissions, local terrain and weather patterns to assess potential concentrations and effects on people, vegetation, soil and livestock.

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The final environmental controls, monitoring and reporting requirements have not yet been determined. Oklahoma DEQ is still reviewing the company's application for a Tier III major-source construction permit, which remains in the technical review stage with the current status listed as “Awaiting Applicant Response.”

If approved and built, the UAE-backed investment could become a major addition to US primary aluminium capacity at a time when the country is seeking to strengthen domestic aluminium manufacturing.

Macro front sentiment weakens, long-term oversupply pressure still exists

Fri, 28 Aug 2026 23:30:00 +0530

Macro perspective

The US-Iran situation saw a temporary easing, with market expectations for restored strait navigation rising. International oil prices pulled back for three consecutive days, and the geopolitical risk premium continued to fade. However, the outlook for US-Iran negotiations remains uncertain, and regional instability has not been completely eliminated.

The Jackson Hole Symposium will be held from August 27 to 29, where Fed Chairman Warsh will deliver his first major policy speech in office. The market is closely watching his remarks on inflation and the rate hike path. The US July PCE price index came in slightly above expectations, with core PCE remaining sticky.

Annual inflation stayed at 3.7 per cent, and the probability of a September rate hike implied by federal funds futures rose to around 40 per cent, while a December rate hike has been fully priced in by the market. Driven by rising rate hike expectations, the US dollar index rose, and the strong dollar exerted some pressure on the nonferrous metals sector.

Fundamentals

In overseas markets, aluminium production resumptions and new capacity outside China continued to ramp up as planned, while damaged capacity in the Middle East is gradually recovering. The market’s expectation of the global aluminium market shifting from tight to loose in the long term persists, continuing to cap the upside room for aluminium prices.

However, LME visible inventory currently remains at a historically low level of around 250,000 tonnes, and such low inventory provides bottom support for LME aluminium. As oil prices pulled back, smelting energy costs outside China edged down, weakening cost support for aluminium prices. The improvement in spot premiums was only moderate, and bulls lacked sustained momentum to push higher.

In the Chinese market, on the inventory front, China’s aluminium social inventory continued its destocking trend, falling to the level of 852,000 tonnes and displaying counter-seasonal destocking characteristics, which provides strong support for aluminium prices. On the demand side, currently, operating rates at downstream processing enterprises remain at neutral levels.

As the traditional September peak season approaches, the market expects subsequent demand improvement. However, downstream pre-stocking is limited; the market is still waiting to see how actual demand materializes during the peak season, and spot transactions are mainly based on rigid demand.

Comprehensive view

Overall, macro headwinds on aluminium prices have strengthened somewhat recently. Policy uncertainty from the Jackson Hole Symposium and Warsh’s first speech, the strengthening US dollar index coupled with rising rate hike expectations, and simultaneously, the fading US-Iran geopolitical risk premium and the oil price pullback together form resistance for aluminium prices.

However, continuous destocking in China and the approaching September peak season expectations provide strong support at lower levels. Amid interwoven bullish and bearish factors, aluminium prices are expected to continue to consolidate at highs next week. The most-traded SHFE aluminium contract is expected to trade in the range of RMB 23,400-24,100 per tonne next week, while LME aluminium is expected to trade in the range of USD 3,150-3,280 per tonne.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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