Investment Rating - The report maintains a "Recommended" rating for the aluminum industry [1] Core Views - The report indicates that tariff pressures are expected to ease further, and the off-season destocking performance is better than anticipated. The aluminum industry is likely to experience a continuous trend of destocking and price increases, supported by improving export conditions [10] - The long-term outlook for the aluminum industry remains positive due to limited supply growth and potential demand increases, maintaining a high level of industry prosperity [10] Summary by Sections 1. Prices - As of May 30, the LME three-month aluminum closing price was $2,448.5 per ton, while the Shanghai aluminum active contract closing price was ¥20,070.0 per ton [14][20] - The average price of A00 aluminum in Changjiang was ¥20,240.0 per ton, down ¥160.0 from the previous week [20] 2. Production - In May 2025, the production of electrolytic aluminum was 3.729 million tons, an increase of 123,000 tons month-on-month and 214,000 tons year-on-year [53] - The production of alumina in May 2025 was 7.272 million tons, up 189,000 tons month-on-month and 593,000 tons year-on-year [53] 3. Inventory - As of May 29, the inventory of electrolytic aluminum ingots in major domestic consumption areas was 511,000 tons, a decrease of 46,000 tons week-on-week [7] - The inventory of aluminum rods was recorded at 128,300 tons, with a slight decrease of 2,500 tons week-on-week [7] 4. Key Companies and Earnings Forecast - Key companies include Shenhuo Co., China Hongqiao, Tianshan Aluminum, China Aluminum, and Yun Aluminum, all rated as "Buy" with projected earnings per share (EPS) growth [5] 5. Supply and Demand - Domestic electrolytic aluminum production capacity remains stable, with a slight increase in the alloying ratio affecting the delivery situation [7] - Demand from downstream sectors is showing signs of weakness, particularly in photovoltaic aluminum and automotive materials, while cable orders remain strong due to state grid demand [7]