Aluminum oxide prices are rising, and downstream resumption of production continues to advance

According to the Commodity Market Analysis System of Business Society, as of May 11th, the average price of alumina in the market was 3616 yuan/ton, and on May 4th, the average price of alumina in the market was 3500 yuan/ton, an increase of 3.33% compared to last week.


In terms of cost


The supply of domestically produced bauxite is still in a tight state. In the situation where there is a shortage of domestic ore, alumina plants choose to supplement imported ore to maintain production. Recently, there have been reports that the product quality has not met the standards, and the quality of imported mineral products is questionable, resulting in the inability to release alumina production capacity.


In terms of supply and demand


After the holiday, due to the low inventory of Shanxi Xin alumina large factory, the quotation was firm, and some intermediaries were under great pressure to execute long orders, forcing them to purchase spot goods at high prices, resulting in a rapid increase in market prices. The aluminum oxide inventory of some electrolytic aluminum enterprises in the north is already at a low level, and the demand for replenishment is evident. Large alumina factories in Shandong and Hebei are also maintaining long-term orders and have no surplus to sell spot goods to the market. Combined with the expected resumption of production of electrolytic aluminum plants in the southwest region in the second quarter, it is in a nationwide general upward trend.


Future Market Forecast


It is expected that the spot price of alumina will continue to rise next week, and we will pay attention to the resumption of enterprise production and changes in market supply and demand.

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