CITIC Securities: Tariff Impact Does Not Hinder Long-term Investment Value of Domestic Aluminum Companies.

CITIC Securities research report stated that on May 30, Trump announced that he would increase the import tariffs on steel and aluminum from 25% to 50%. We believe that if implemented, the impact of this tariff increase on China's aluminum industry can be controlled, and the expansion of the US aluminum premium may stimulate a temporary rise in aluminum prices. Since 2017, China's aluminum industry's dependence on exports to the US has significantly decreased, and the industry's supply and demand balance has also improved significantly, providing solid support for the industry. We still see long-term investment value in the aluminum sector and recommend paying attention to opportunities for low-position layout.