According to a research report by Huatai Securities, the "anti-internal competition" sentiment has temporarily elevated prices across the aluminum industry chain. From a fundamental standpoint, inventories of electrolytic aluminum are currently low, and downstream operating rates witnessed a rebound last week, signaling a fundamental recovery. Additionally, alumina is experiencing a supply crunch due to a significant decrease in exchange warehouse receipts, despite social inventories continuing to rise. The concurrent uptick in the prices of both electrolytic aluminum and alumina has fueled the strengthening of aluminum sector stocks this week.

Looking ahead, it is anticipated that the demand for electrolytic aluminum in sectors like photovoltaics will maintain a high growth rate in the second half of 2025, with fundamentals providing underlying support for aluminum prices. Conversely, alumina fundamentals appear weaker, with prices expected to fluctuate downwards. Consequently, Huatai Securities remains optimistic about the profit growth prospects of the electrolytic aluminum sector for the remainder of 2025.