Goldman Sachs said industry feedback points to accelerating aluminum supply growth, driven by strong margins domestically and abroad, and now expects Chinese capacity to exceed 48.0 mln t by end-2026. The bank forecasts SHFE spreads to narrow from RM

2026-06-16

Goldman Sachs said industry feedback points to accelerating aluminum supply growth, driven by strong margins domestically and abroad, and now expects Chinese capacity to exceed 48.0 mln t by end-2026. The bank forecasts SHFE spreads to narrow from RMB8,879/ton in 1H26 to RMB4,250/ton in 2027, which it says would cut recurring 2027 profits for Aluminum Corp of China (02600.HK) and China Hongqiao (01378.HK) by about 50% and 40%, respectively. Goldman downgraded Aluminum Corp of China to Sell and trimmed its 12‑month PT to HK$7.5; it kept China Hongqiao at Neutral and lowered its PT to HK$26.