The continuous commissioning of new capacity, combined with the high operating rates of existing capacity, has led to a strong bearish sentiment in the market. If prices continue to fall, causing more companies to incur losses, it may trigger concentrated production cuts. Inland alumina enterprises are now facing a dilemma, with the high cost of using imported bauxite and insufficient domestic bauxite supply. The entire alumina industry is under pressure from multiple factors, including cost pressures, overcapacity, and falling prices. In the short term, alumina companies are forced to maintain operations through “low-profit, high-volume production.” However, the long-term supply-demand imbalance may lead to an industry “shakeout.” The future price trend will depend on the scale of production cuts and cost changes.
