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30 AUGUST 2026 SMM

PV aluminium frame operations continue to consolidate on a strong note, aluminium price macro sentiment weakens, and inventory forward oversupply pressure persists

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Solar frames

PV aluminium extrusion: In this week's survey sample, the operating rate of PV frame enterprises consolidated on a strong note. Affected by the expected implementation of the US Section 232 PV new regulation, policy-driven advance stockpiling demand was mainly concentrated in the upstream solar cell sector. Order-taking and production schedules at the end-user module export side remained relatively cautious, with no large-scale concentrated market trend emerging.

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As a result, growth in supporting orders for PV frames was limited, only marginally improving the industry's operating rates and failing to create a trend rebound momentum. Looking ahead in the short term, production schedules of downstream PV module enterprises are relatively stable, and with the gradual absorption of the overseas policy buffer window, end-use demand shows no significant growth. In the short term, the operating rate of PV frame enterprises is expected to continue its consolidating-on-a-strong-note trend.

Raw material prices: During the period from 2026.8.24 to 2026.8.27, the SMM A00 weekly average price was RMB 23,832.5 per tonne, up 0.1 per cent from the previous week's average. Overall, macro front, the pressure on aluminium prices has increased somewhat. The Jackson Hole annual conference and Warsh's debut brought policy uncertainties. The strengthening US dollar index combined with rising expectations of interest rate hikes, while the easing of US-Iran geopolitical risk premiums and the pullback in oil prices jointly created overhead resistance for aluminium prices.

However, China's inventory continued destocking and the approaching "September peak season" expectations provided strong support to aluminium prices. Backed by these bullish and bearish factors, aluminium prices are expected to continue to consolidate at highs next week. Next week, the most-traded SHFE aluminium contract is expected to trade in the range of RMB 23,400-24,100 per tonne, 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. 


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