Development Status of Alumina Industry in China

Our alumina industry concentration has risen further. The top 10 alumina producers have accounted for more than 80% - 90% of the national alumina output. And the industry giants are mainly concentrated  in Chinalco, Xinfa, Weiqiao and other enterprises.

The alumina industry concentration is increasing, and at the same time, the industry layout and organization structure have also achieved certain degree of optimization. It is more important that the industry is able to "concentrate resources to accomplish large undertakings", and from the end of 2015 to the beginning of 2016, “large area production reduction of domestic alumina industry” is one of the representatives.

Many domestic alumina producers reduce the production nearly ten million tons, which directly makes alumina spot market changed from excess supply to short supply, thus stimulating the alumina prices to rise. There are alumina enterprises from an industry-wide losses into profits more than sixty percent.

As of early August this year, the lowest level of domestic spot alumina price has dropped to 1660-1700 yuan/ton, with most of alumina production enterprises’ inventory level decline. Alumina production enterprises make offers firmly, which makes the downside risk of alumina decreased, and in short period, alumina prices will remain stable.

However, there are several industry insiders who think the rebound opportunity of alumina has not yet arrived, and in the third quarter, alumina price still has downside risks.