On Tuesday, the main SHFE aluminum contract closed at RMB 23,755 per tonne, down 0.13%. LME aluminum settled at USD 3,212.3 per tonne, a drop of 0.9%. SMM spot average price stood at RMB 23,740 per tonne, down RMB 60 per tonne, at flat basis. The Nanchu spot average price was RMB 23,900 per tonne, down RMB 60 per tonne, with a premium of RMB 160 per tonne. According to SMM data, as of August 24, primary aluminum ingot inventory stood at 860,000 tonnes, falling by 15,000 tonnes month-on-month; aluminum bar inventory at major domestic consumption hubs registered 14,450 tonnes, rising by 20 tonnes month-on-month.
Macro Front: Reports indicate the United States and Iran have reached a cease-fire agreement, which is expected to be officially announced in the coming days. Iran and Oman issued a joint statement, proposing to establish a mutually-agreed secure maritime passage through the Strait of Hormuz.
Rising expectations for a secure shipping lane in the Strait of Hormuz triggered a sharp drop in international oil prices, easing commodity-driven inflation pressure for the time being and repairing market risk appetite.
Fundamentals: Domestic social inventories continued to draw down. LME aluminum inventory remained at a low level of 247,000 tonnes, and low-inventory conditions continue to underpin the floor for aluminum prices. In the short run, aluminum prices will trend in a strong-biased oscillation on the back of improved macro sentiment and fundamental support. Yet upside potential is capped by insufficient demand release amid the consumption off-season. Whether peak-season demand expectations will materialize remains a key variable.
Company Perspective: Against this market backdrop, Shanghai Perfect New Materials Technology Co., Ltd. is engaged in aluminum processing, manufacturing, sales, and distribution. Founded in 2017 and headquartered in Shanghai, the company operates across construction, transportation, new energy, electronics, and high-end equipment manufacturing. With a 70,000-square-meter facility and more than 280 employees, including 80 technical personnel, the company provides aluminum solutions supported by intelligent manufacturing and smart warehousing capabilities. Its products are certified to ISO/TS 16949 and other international standards, supporting customers across multiple aluminum application sectors.
