Investment Rating - The investment rating for Aluminum Corporation of China (Chalco) is "Buy" with a target price of Rmb9.62 per share based on a 2.22x 2025E P/B [18] - The investment rating for Baoshan Iron & Steel is "Buy" with a target price of Rmb8.2 per share based on a 0.85x 2025E P/B [22] - The investment rating for Tianqi Lithium is "Hold" with a target price of HK$23.0 for H-shares and Rmb26.26 for A-shares [24][27] Core Insights - The report indicates cautious market expectations regarding demand recovery in the aluminum sector in China, with a near-term pecking order of steel > aluminum > lithium > copper > gold > battery > thermal coal > cement [1] - Total aluminum production in China for the week of June 12-18, 2025, was 845kt, flat week-over-week (WoW), and up 3% year-over-year (YoY) [2] - Total aluminum inventory in China stood at 722kt on June 19, 2025, reflecting a 1% increase WoW but a significant 38% decrease YoY [3] - Apparent aluminum consumption in China was 849kt during the same week, down 6% WoW but up 5.8% YoY for the year-to-date [4] Production Summary - China's total aluminum production year-to-date reached 20.9 million tonnes (mnt), representing a 3.2% increase YoY, while aluminum billet production was 8.4mnt, up 6.2% YoY [2] - Aluminum billet production for the week was 365kt, flat WoW, and up 9% YoY [2] Inventory Summary - The total inventory of aluminum ingots was 493kt, down 3% WoW and 40% YoY, while aluminum billet inventory was 229kt, up 9% WoW but down 30% YoY [3] - The inventory levels are lower than the same period in 2021-2024 on a lunar calendar basis [7] Consumption Summary - Apparent consumption of aluminum ingots was 885kt, down 3% WoW but up 1% YoY, while aluminum billet apparent consumption was 329kt, down 7% WoW but up 3% YoY [4] - Year-to-date apparent consumption of aluminum in China reached 21.6mnt, reflecting a 5.8% increase YoY [4]

Investment Rating - The report maintains a base case for oil prices in the low to mid $60s for the remainder of 2025 and $60 in 2026, despite geopolitical concerns [6][10]. Core Insights - Geopolitical risks have increased due to Israel's attack on Iran, raising the worst-case scenario probability for oil supply disruptions to 17% [3][4]. - The recent spike in oil prices by 5% reflects heightened security risks in the Middle East, with a 7% probability of a worst-case scenario where supply impacts extend beyond Iranian exports [6][10]. - The US aluminum tariffs have created significant uncertainty in the aluminum market, with the US Midwest premium (MWP) currently insufficient to incentivize necessary imports [7][10]. Oil Market Summary - Global oil demand averaged 103.9 million barrels per day (mbd) in June, showing a year-over-year increase of 560 thousand barrels per day (kbd) [10]. - Total liquid inventories surged by 34 million barrels (mb) in the first week of June, with crude oil stocks rising by 27 mb [10]. - An attack on Iran could potentially spike oil prices to $120, impacting US Consumer Price Index (CPI) to 5% [6]. Aluminum Market Summary - The surprise increase in US aluminum tariffs to 50% has led to a sideways outlook on aluminum prices, with participants at the Harbor Aluminum Summit expressing uncertainty about future demand [7][10]. - The current MWP is around 60 cents per pound, which barely covers the tariff, indicating a need for the MWP to rise if the tariff remains unchanged [10]. - Existing inventory can buffer the market temporarily, but it will deplete quickly, leading to potential price increases if the tariff situation does not change [10]. Metals Activity Summary - China's steel output has slowed sharply, reaching its lowest rate since 2018, with a 5% drop compared to previous months [9]. - The annualized run-rate of steel production in China is at 967 million tons (Mt), suggesting a potential peak in production for 2025 [9].

Alcoa (AA) FY Conference Summary Industry Overview - The aluminum industry is positioned for long-term growth due to its essential role in various sectors including renewable energy, electric vehicles, and industrial processes [3][4] - Alcoa emphasizes aluminum's importance in the transition to a low-carbon economy, highlighting its applications in solar panels and wind turbines [3] Key Financial Insights - Alcoa managed to limit the potential tariff cost increase from $30 million to $10 million by redirecting Canadian-produced metal to non-U.S. customers, preserving margins despite reduced revenue [6] - The second quarter guidance was adjusted due to changes in the aluminum segment's benefits from lower alumina prices, with expected benefits reduced from $165 million to $140 million [7] - The tax provision for the second quarter is expected to approximate zero, negating previously anticipated tax benefits [7] Tariff Impact - The recent increase in tariffs from 25% to 50% has led to a rise in the Midwest premium, which peaked at $0.68 per pound but has since declined [13] - Alcoa's Canadian production is negatively impacted by tariffs, as the costs exceed earnings from U.S. sales [15] - Ongoing discussions with the U.S. administration aim to address the negative impacts of tariffs on Alcoa and the broader aluminum industry [20][22] Operational Updates - The smelter in Spain is currently shut down due to a power outage, with plans to restart contingent on government feedback regarding the outage's cause [30][31] - Alcoa is progressing with a new mine approval in Australia, expected to enhance aluminum production and reduce costs significantly by 2029 [62][64] Market Dynamics - Chinese aluminum demand has slowed, but growth is observed in India and Southeast Asia, with a projected 7% CAGR in primary aluminum demand in India through 2029 [37] - Alcoa is exploring opportunities to sell idled assets to hyperscalers, with several sites being marketed for potential data center use [39][40] Balance Sheet and Financial Health - Alcoa's adjusted net debt target is set between $1 billion and $1.5 billion, with a current debt level of $2.1 billion, indicating ongoing deleveraging efforts [45][46] - The company has successfully managed its pension liabilities, which are now fully funded in the U.S. [46][53] Future Growth Opportunities - Alcoa is focusing on growth through its current portfolio and exploring new opportunities in the industry, including enhancing capabilities for recycled content to meet European demand [48][49] - The company is open to strategic opportunities but has no immediate announcements [49] Conclusion - Alcoa is navigating a complex landscape influenced by tariffs, operational challenges, and market dynamics while positioning itself for future growth through strategic investments and operational efficiencies [59][60]

Financial Performance & Outlook - Alcoa's Q1 2025 adjusted EBITDA excluding special items increased to $855 million, up from $677 million in Q4 2024[50] - Q1 2025 net income attributable to Alcoa Corporation was $548 million, or $2.07 per common share[50] - The company maintains a strong cash balance of $1.2 billion as of Q1 2025 and adjusted net debt of $2.1 billion[57] - FY25 outlook includes alumina shipments of 13.1 to 13.3 million metric tons and aluminum shipments of 2.6 to 2.8 million metric tons[59] Market Dynamics - Spot alumina price was $363/mt as of June 3rd, with over 80% of Chinese refineries being unprofitable at current prices[22] - LME aluminum price was $2,449/mt, with the Midwest premium at $971/mt[26] - U S primary aluminum apparent consumption is 4.1 Mmt and imports are 4.2 Mmt in 2024[32] Strategic Initiatives - Alcoa completed a $1 billion debt offering in Australia, primarily used to repay existing debt[16] - The company formed the San Ciprián joint venture and is resuming production at the smelter, expecting an EBITDA loss of approximately $70 million to $90 million in 2025[17, 75] - Alcoa is targeting an optimal capital structure with $10 to $15 billion adjusted net debt[58]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" approach, aiming for quicker profits [1] Group 1: Momentum Investing Characteristics - Fast-moving trending stocks can be difficult to enter at the right time, as they may lose momentum if future growth does not justify their high valuations [2] - A safer strategy involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Kaiser Aluminum (KALU) Analysis - Kaiser Aluminum (KALU) has shown a four-week price change of 5%, indicating growing investor interest [4] - KALU has gained 15% over the past 12 weeks, with a beta of 1.43, suggesting it moves 43% more than the market [5] - KALU holds a Momentum Score of B, indicating a favorable time to invest based on momentum [6] Group 3: Earnings Estimates and Valuation - KALU has a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which attract more investors and drive the stock price up [7] - The stock is trading at a Price-to-Sales ratio of 0.40, suggesting it is undervalued, as investors pay only 40 cents for each dollar of sales [7] Group 4: Additional Opportunities - Besides KALU, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8]

Group 1: Company Overview - Constellium SE (NYSE: CSTM) is a global leader in developing innovative, value-added aluminum products for various markets, including aerospace, packaging, and automotive [5] - The company generated $7.3 billion in revenue in 2024 [5] Group 2: Innovations and Products - At the 55th Paris Air Show, Constellium will showcase its high-performance aluminum products, including Airware, an aluminum-lithium solution designed for aircraft and spacecraft applications [2] - Airware provides superior strength-to-weight ratios, reduced material density, and excellent fatigue and corrosion resistance, making it suitable for more efficient, lower-emission aircraft [2] Group 3: Sustainability Initiatives - Constellium will unveil the first aluminum ingot fully manufactured at lab scale from end-of-life aircraft, utilizing a recycling and remelting process that meets new aircraft production standards [3] - This initiative is a collaboration between Constellium and TARMAC Aerosave, supported by Airbus, representing a significant advancement toward a circular economy in aerospace [3] Group 4: Future Projects - The exhibit will also highlight the company's progress on the Wing of the Future project, aimed at developing next-generation wing technologies for lighter, more fuel-efficient aircraft [4] - The role of aluminum in sustainable aviation will be explored, with additional resources available for further insights [4]

Investment Rating - The investment rating for the lithium sector has been adjusted to a pecking order of steel > aluminum > lithium > copper > gold > battery > thermal coal > cement [1] Core Insights - The national "trade-in" subsidy for new energy vehicles (NEVs) has been suspended in some provinces earlier than expected, which may exert downward pressure on NEV demand, but the impact is estimated to be limited due to OEMs offering price discounts and diminishing marginal impact of subsidies [1] - Supply side dynamics are critical, with expectations of more supply cuts for lithium compounds sourced from spodumene and lepidolite in the next three months, as current prices are testing the cost curve for most lithium producers [1] - The market is expected to experience lingering pressure over the next 12 months due to significant oversupply this year [1] Summary by Sections Lithium Market Overview - As of June 5, 2025, the average selling prices (ASP) for lithium carbonate (Li2CO3) and lithium hydroxide (LiOH) are Rmb60.2k/t and Rmb62.3k/t respectively, showing a decline from the previous week [2] - China's Li2CO3 production increased by 5% week-over-week to 17,471 tons, with production from brine, lepidolite, and spodumene showing varied changes [2] - Total inventory of Li2CO3 reached 132,432 tons, reflecting a 1% increase week-over-week, with downstream players' inventory decreasing slightly [2] Company Valuations - Aluminum Corporation of China (Chalco) has a target price of HK$7.60 per share based on a price-to-book (P/B) ratio of 1.59x for 2025E, reflecting stronger than historical average returns due to higher aluminum margins [18] - Tianqi Lithium's A-share target price is set at Rmb26.26 per share based on a P/B multiple of 1.0x for 2025E, which is approximately 1.2x standard deviation below the historical average [22] - The target price for Tianqi Lithium's H-shares is HK$23.0, applying a 30% discount to the A-share target P/B, consistent with historical averages [24]

Investment Rating - The report maintains a positive outlook on cement, copper, and incrementally positive on steel and aluminium, while holding a negative view on coal and lithium [1][9]. Core Insights - Earnings estimates for China commodities have been refreshed, reflecting mark-to-market price changes for 1H25, with target price changes ranging from -13% to +12% [1][9]. - The report highlights a positive outlook for hog pricing/margin in 2H25E due to improved supply discipline [1][9]. Summary by Sector Steel - Earnings forecasts for Baosteel and Angang have been revised up by 1-4% for 2025E, while the loss-making forecast for Maanshan has been cut by 11% [10]. - Maintain Buy on Baosteel with a new target price of Rmb8.8/sh [10]. Coal - The thermal coal market is expected to remain balanced in 2025E, with a decline in demand driven by renewable energy expansion [11]. - Earnings forecasts for Shenhua, Chinacoal, and Yankuang have been cut by 2-11% for 2025E and 10-27% for 2026-27E [12]. Cement - Unit gross profit forecasts for cement have been revised down by Rmb2-6/t for 2025E, but a positive view is maintained for 2H25E due to supply discipline [13]. - Earnings estimates for CNBM, WCC, BBMG-H/A, Conch-H/A, and CRBMT have been cut by 6% to 18% for 2025E [14]. Aluminum - Earnings estimates for Hongqiao have been revised up by 5-27% for 2025-27E, reflecting higher industry spread forecasts [17]. - Maintain Neutral on Hongqiao with a target price of HK$12.5/sh [17]. Copper - The benchmark copper price forecast has been revised to an average of US$4.20/lb in 2025E and US$4.61/lb in 2026E [18]. - Earnings estimates for CMOC-H/A, JXC-H/A, and MMG have been cut by 1-18% for 2025-26E [18]. Lithium - Earnings estimates for Ganfeng, Tianqi, and Yongxing have been cut by 3-4% for 2025E due to lower lithium prices [20]. - Yongxing's 2027E earnings have been cut by 37% based on flat lithium price forecasts [20]. Paper - Earnings forecasts for ND Paper have been revised up by 3-4%, while Sunpaper's earnings have been cut by 3% [22].

Group 1 - The company held its 15th meeting of the 6th Board of Directors on June 6, 2025, in Shanghai, with all 5 directors present, ensuring compliance with legal and regulatory requirements [1] - The board approved a proposal to enhance the green low-carbon energy efficiency of the company's 1.4 million tons of electrolytic aluminum capacity using advanced domestic energy-saving technology [2] - The project will utilize fully graphitized cathode carbon blocks and new energy-saving cathode structure technology, leading to improved operational stability and current efficiency [2] Group 2 - Upon completion, the company's electrolytic aluminum production capacity is expected to reach approximately 1.4 million tons per year, with electricity consumption for aluminum liquid expected to achieve industry-leading levels [2] - The construction period for the project is tentatively set at 10 months, with an estimated investment amount [2] - The proposal has been reviewed and approved by the Board's Strategy and Sustainable Development Committee [2]

Group 1: Automotive Intelligence Data - The article focuses on three main areas of automotive intelligence: intelligent perception, intelligent decision-making, and intelligent cockpit, showcasing key indicators such as shipment volume, installation rate, penetration rate, and localization level to illustrate market trends [2]. Group 2: Aluminum Industry Observation - Weekly tracking of core indicators such as prices, inventory, production, operating rates, cash profits, and various costs in the aluminum industry is provided [3]. Group 3: Building Materials Industry High-Frequency Data Tracking - High-frequency tracking of supply and demand conditions and price trends in the cement, glass, and fiberglass sub-markets is presented, with key indicators available for quick reference [5][6]. Group 4: Film Industry Database - The film industry database covers two main areas: box office and cinema channels, featuring monthly indicators such as box office revenue, number of cinemas, ticket sales, and market share of film investments [7].