Aluminium Shanghai Update - July 2023

Macro Economy

In June, the manufacturing purchasing Managers Index (PMI) stood at 49.0 percent, up 0.2 percentage points from the previous month, indicating an improvement in manufacturing sentiment. From the perspective of enterprise size, the PMI of large enterprises was 50.3%, up 0.3 percentage points from the previous month; The PMI of medium-sized enterprises was 48.9%, up 1.3 percentage points from the previous month; Small business PMI was 46.4%, down 1.5 percentage points from the previous month.

Industry information

In June 2023, China’s primary aluminum production was 3,355,500 tons, with an average daily output of 119,900 tons and an annual output of 40,825,300 tons, an increase of 1,300 tons from 110,600 tons per day in May 2023.

News of Corporates

On June 29, Dingsheng New Materials announced that the company intends to acquire 100% of the equity of Slim Aluminum and its wholly-owned subsidiaries Slim Merseburg and Slim Alu GMBH held by overseas RMIH and RMI in the form of cash, with the total acquisition price expected to be 55.3 million euros. Slim Aluminum has two production sites in Cistna (Italy) and Merseburg (Germany), with a total production capacity of approximately 135,000 tons/year.
Recently, Tesla officially released the 2022 Tesla Impact Report, which plans to require 100% of Tier 1 aluminum suppliers to implement the Aluminum Management Initiative ASI performance standards and certification, requiring them to develop appropriate management systems to track greenhouse gas emissions and make public disclosures.

Logistics

CHINA CONTAINERIZED FREIGHT INDEX:

Ship Route	Previous Period	Current period	Compared to the last period
Ship Route	07/07/23	14/07/23	(%)
China export container freight rate composite index	880.20	869.92	-1.2
EUROPE SERVICE	1080.19	1052.27	-2.6
SOUTHEAST ASIA SERVICE	585.92	578.43	-1.3
SOUTH AFRICA SERVICE	708.45	719.62	1.6
SOUTH AMERICA SERVICE	678.18	702.77	3.6

Alphaliner TOP 100 / 16th July 2023

Others

Two market participants directly involved in the quarterly pricing negotiations said that the world’s major aluminum producers have lowered the premium price of primary aluminum to Japanese buyers for July-September shipping to $170 per ton, from the initial offer of $180 per ton.
In a notice to members, the London Metal Exchange said it would reduce the daily price limit for copper and aluminium futures to 12 percent from July 24, compared with the current 15 percent limit. Other base metal futures contracts are still subject to a 15 percent rise or fall limit.

Aluminum Shanghai Exhibition 2023:

First of all, we sincerely thank our colleagues from all over the world for participating in and supporting this exhibition in Shanghai from 5th to 7th July.
We talked to nearly 50 suppliers and buyers during this period, shown our strong ability of supply chain management to buyers, shown our big volume and diverse demand for global market to suppliers.
These were fruitful meetings with positive feedback from upstream and downstream.

Thanks again for all participants for their great effort and hard work!