Currently, small and medium-sized alumina enterprises in the Jin-Yu region, considering various factors (limited domestic ore substitution, increased export of low-sodium alumina, continued use of long-term contract low-priced imported ore, profitability and cash flow support, and production cuts leading to the loss of long-term contract customers), continue to maintain limited production. Their competitiveness (both in terms of production costs and sales prices) is not significantly weaker than coastal production capacities, and losses continue to spread across the entire industry and all enterprises.
Market participants generally have a bearish outlook on alumina, and market trading hotspots continue to focus on the medium-to-long-term fundamental oversupply and the expectation of downward pressure on ore prices. As long as alumina enterprises have not implemented large-scale production cuts, the downward trend is expected to persist.
