Greater China Materials: Feedback from Aluminum Checks in Henan

研报英文原文证据摘录

Greater China Materials: Feedback from Aluminum Checks in Henan

Idea

May 15, 2026 01:17 AM GMT

Morgan Stanley Asia Limited+MGreater China Materials | Asia Pacific Rachel L Zhang

Equity Analyst

Feedback from Aluminum Rachel.Zhang@morganstanley.comHannah Yang, CFA +852 2239-1520

Hannah.Yang1@morganstanley.com +852 2239-7079

Checks in Henan Chris Jiang

Chris.Jiang@morganstanley.com +852 3963-1593

We visited multiple aluminum processors and traders in Henan Cynthia Tang

province to check on aluminum demand. Please see our trip ResearchCynthia.Tang@morganstanley.comAssociate +852 3963-4360

feedback below.

Greater China Materials

Export demand is picking up with profit improving: Our talks with leading Asia Pacific

Industry View Attractive

processing plants and traders involved in the export business indicate that export

orders increased by ~30% MoM in April. One leading player indicates that export

orders in May are up by 50% compared to that in March 2026. Processing plants

that have sales volume 100% locked in long-term contracts noted that export profit

increased by ~Rmb1,800/t in April compared to 1Q26, with volume up by 10% due

to some pre-load orders resulting from tight supply overseas.

Aluminium twisted wire exports remain strong: We visited an aluminum twisted

wire producer in Henan. The company's export volume increased ~200% MoM in

April, and it currently has ~20kt export orders on hand. Processing fee is Rmb1,200/

t excluding transportation costs. The wire producer we spoke to commented that if

it implements the 13% VAT rebate, it will offer 10% discount on the aluminum price

to the buyer. Twisted wire producers, especially those located in Hebei province,

intend to expand capacity, but it might be slow as the machines take time to be

delivered.