Macro: (1) The UK and the US reached an agreement on the terms of a tariff trade deal, with the UK government agreeing to make concessions on imports of US food and agricultural products in exchange for the US reducing tariffs on UK car exports. The US will lower tariffs on UK-made cars to 10 per cent and reduce tariffs on steel and aluminium to zero. (Bullish★)
(2) The Ministry of Commerce once again responded to the high-level economic and trade talks between China and the US, stating that if the US wants to resolve issues through negotiations, it must be prepared to correct its wrong practices and cancel unilateral tariff hikes, and take action. China will not sacrifice its principles to seek any agreement. (Neutral★)
Fundamentals: (1) According to SMM statistics, on May 8, domestic mainstream consumption areas' aluminium ingot inventory was 620,000 tonnes, down 16,000 tonnes from Tuesday, and up 6,000 tonnes from before the holiday (April 30). (Bullish★)
(2) On May 8, SMM statistics showed that Shanghai Bonded Zone's aluminium inventory was 96,600 tonnes, Guangdong Bonded Zone's inventory was 19,700 tonnes, totalling 116,300 tonnes, up 6,800 tonnes W-o-W. (Bearish★)
(3) According to SMM statistics, China's aluminum plate/sheet and strip production in April 2025 was 1.186 million tonnes, with an operating rate of 67.23 per cent, down 2.31 percentage points MoM; aluminum foil production was 450,200 tonnes, with an operating rate of 70.52 per cent, down 6.05 percentage points M-o-M. (Bearish★)
Primary aluminium market: Yesterday, SHFE aluminium opened in the morning, continuing the low level of around RMB 19,400 per tonne from the night session, with downstream buying the dip being active, and social inventory destocking stimulating a rebound in the futures market. The closing price in the first trading session returned to RMB 19,630 per tonne.
