Summary: On July 28, SME spot A00 aluminum averaged 23,200 yuan/tonne, flat from the prior day. Casting aluminum alloy A356.2 and ADC12 stood at 23,700 and 23,900 yuan/tonne respectively, underpinned by new energy vehicle demand. According to CCMN on July 28, Indonesia's mineral export delays disrupted raw material supply. Aluminum sheet, strip, and foil run on just-in-time production; attention turns to downstream scheduling.
The lightweighting trend in new energy vehicles is quietly reshaping aluminum demand. Downstream alloy quotes reflect the warming sentiment. Spot trading remains thin, with most participants on the sidelines. Downstream processors generally maintain low raw material inventories.
As core materials for NEV wheel hubs and structural components, casting alloy A356.2 averaged 23,700 yuan/tonne today, while ADC12 stood at 23,900 yuan/tonne—both unchanged from the previous session. Steady prices indicate resilient end-user absorption. In aluminum sheet, strip, and foil segments, high-end products such as battery foil and body panels are produced mainly on order, with no concentrated restocking observed. Aluminum used in photovoltaic frames and battery foil also runs on stable schedules. Order structure diverges: automotive and PV-related aluminum outperforms construction profiles. Spot transactions are dominated by monthly long-term contracts, with limited spot deals. The Shanghai aluminum continuous contract opened at 23,255 yuan/tonne, hit a high of 23,320 and a low of 23,085, with yesterday's settlement at 23,175. Volume reached 162,672 lots, open interest 252,785 lots. Prices traded in a narrow range as longs and shorts wrestled over cost and demand. The daily fluctuation was 235 yuan, with a narrowing band. The Yangtze River spot aluminum premium/discount averaged 10 yuan/tonne, up from 5 yuan a day earlier, indicating persistent support from sellers.
Supply-side disruptions re-emerged. According to CCMN on July 28, Indonesia's exports of various minerals were held up due to incomplete regulatory rules on associated rare earths, slowing customs clearance for major export items like alumina. Alumina is a key input for electrolytic aluminum; prolonged shipment restrictions could raise domestic smelting costs and feed through to fabricated aluminum prices. Beyond alumina, by-products such as nickel pig iron also faced delays, stirring related market sentiment. From inventory and operating rates, the aluminum fabrication sector shows no active stockpiling. Downstream production follows orders, making order fulfillment the key price driver. Certification cycles for automotive lightweighting aluminum are lengthening, slowing new order placement.
Lightweighting represents the most certain incremental demand driver for aluminum. If NEV production remains elevated, alloys like A356.2 and ADC12 are likely to stay firm. Going forward, attention should focus on order fulfillment at aluminum sheet, strip, and foil producers, as well as inventory buildup pace in automotive and PV end-markets. Should peak-season orders for sheet, strip, and foil materialize, fabricator margins may see marginal improvement. The market continues to gauge the temperature of demand.
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