At the current stage, the characteristics of spot price discovery in trade transactions are becoming more evident. There is a lack of foundation for direct cooperation between enterprises at both ends. On one hand, aluminum plants are not in a hurry to procure, with only small amounts of essential procurement conducted through bidding, mainly to attract trade merchants’ quotations and achieve low-price deals. On the other hand, alumina producers are facing increased losses. The current market trend, in essence, is due to the overcapacity structure and surplus production, which is inevitable under the circumstances. A medium- to long-term adjustment is bound to happen.
