HK Stock Market Move | Aluminum stocks lead the gains as inventory continues to decrease, supporting the upward movement of aluminum prices. Institutions are optimistic about the structural recovery of aluminum companies over the long term.

Aluminum stocks have seen significant gains. As of the time of reporting, Aluminum Corporation Of China (02600) is up 4.34%, priced at HKD 8.89; CHINAHONGQIAO (01378) is up 4.15%, priced at HKD 23.58; CHUANGXIN IND (02788) is up 3.72%, priced at HKD 17.58; and NANSHAN AL INTL (02610) is up 3.30%, priced at HKD 25.68. On the news front, tensions regarding transportation through the Strait of Hormuz have escalated, and the overseas shortage pattern has not been fundamentally resolved this year. Huayuan Securities noted that aluminum inventories continue to decrease, supporting an upward trend in aluminum prices. In the medium to long term, on the supply side, domestic electrolytic aluminum operating capacity is nearing its ceiling, while the progress of overseas construction projects is slow. On the demand side, there is stable growth, with the possibility of exceeding expectations. This year, electrolytic aluminum might experience a supply shortage, and aluminum prices are expected to enter an upward cycle. Industrial released a research report stating that both overseas and domestic electrolytic aluminum continue to follow a trend of inventory reduction, combined with a slowdown in the pace of commissioning new capacity overseas. The recovery pace of electrolytic aluminum capacity in the Middle East is still expected to be conservative. In the short term, aluminum prices are likely to remain strong alongside copper prices, while stock prices of aluminum companies are expected to rebound based on structural adjustments over time.