The 2nd reduction in production of electrolytic aluminum will drive alumina prices down

At present, affected by European debt crisis and China’s real estate policy, investors’ worries surged. The benchmark index of China's stock market fell to bear market levels, metals prices continued to come down without the indication of stopping. If the adjustment of government policies are not proper, there will be the 2nd down to the bottom.

The government promoted GDP growth, and local governments invested much on overcapacity in order to fulfill GDP growth, which led to the serious surplus of domestic electrolytic aluminum. Meanwhile it also caused the results that price rise was slow, the market was weak and drop was the main trend.
Currently domestic spot price of electrolytic aluminium was down around15,000 yuan/ton and 14,950 yuan/ton. The number of electrolytic aluminum factories was bigger and bigger. As learned that the current capital of some electrolytic aluminum enterprises was tight. The policy will help to increase the production cost of electrolytic aluminum. It is possible that the expected the 2nd reduction in production of electrolytic aluminium would be a fact.

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