Price trend

According to the Commodity Market Analysis System of SunSirs, as of May 11th, the average price of aluminum oxide in the market was 3,616 RMB/ton, and on May 4th, the average price of aluminum oxide in the market was 3,500 RMB/ton, an increase of 3.33% compared to last week.

Analysis review

In terms of cost

The supply of domestically produced bauxite was still in a tight state. In the situation where there was a shortage of domestic ore, aluminum oxide plants chose to supplement imported ore to maintain production. Recently, there were reports that the product quality had not met the standards, and the quality of imported mineral products was questionable, resulting in the inability to release aluminum oxide production capacity.

In terms of supply and demand

After the holiday, due to the low inventory of Shanxi Xin aluminum oxide large factory, the quotation was firm, and some intermediaries were under great pressure to execute long orders, forcing them to purchase spot goods at high prices, resulting in a rapid increase in market prices. The aluminum oxide inventory of some electrolytic aluminum enterprises in the north was already at a low level, and the demand for replenishment was evident. Large aluminum oxide factories in Shandong and Hebei were also maintaining long-term orders and had no surplus to sell spot goods to the market. Combined with the expected resumption of production of electrolytic aluminum plants in the southwest region in the second quarter, it was in a nationwide general upward trend.

Market outlook

It is expected that the spot price of aluminum oxide will continue to rise next week, and it is needed to pay attention to the resumption of enterprise production and changes in market supply and demand.

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