The downstream aluminum plants still have a strong intention to replenish their stocks. Taking advantage of the expected supply pressure increase and the downward market inertia, major aluminum plants continue to form noticeable discounts through bidding procurement and “fixed price” transactions. In the northern market, real-time transactions are mainly driven by the supply from Shandong, with relatively lower transaction prices. The real-time ex-factory price of spot aluminum calculated through bidding and other methods is between 3360-3430 RMB/ton. This price is already lower than the production cost of some Shandong capacities that use high-priced bauxite, and lower than the production costs of most alumina companies in Shanxi and Henan that use purchased bauxite. The alumina companies have not yet faced significant production cut pressure or any news related to it.
