Cost reduced and the aluminum ingot ton profit improved

Aluminum prices fluctuated sideways in May

According to the Commodity Market Analysis System of Business Society, the average price of domestic aluminum ingots in the East China market on May 30, 2023 was 18363.33 yuan/ton, a decrease of 0.69% compared to the aluminum price of 18490 yuan/ton at the beginning of the month (May 1).

In the long term, the current price is in the sideways range after a high price decline, and has been fluctuating in the range of 17500 to 19500 yuan/ton.

Cost reduction and improvement in aluminum ingot ton profit

The cost center of domestic electrolytic aluminum smelting continued to decline in May, mainly due to the downward movement of raw material prices, leading to an increase in profits per ton of aluminum.

Due to the downward movement of the prices of petroleum coke and coal tar pitch as raw materials for pre baked anode, the cost support is weak. In May, the price of pre baked anode continued its downward trend since the beginning of the year and continued to fall.

The main raw material is aluminum oxide. In 2023, the new production capacity of aluminum oxide in China will be approximately 6.3 million tons, with a renewable production capacity of over 10 million tons. Currently, the production capacity of aluminum oxide is in a pattern of oversupply. The domestic alumina production in April was slightly lower than in March, reaching 6.845 million tons, a decrease of 1.0% month on month and an increase of 11.9% year-on-year. It is understood that the newly built 1 million ton production capacity of Shandong Lubei Chemical has entered the trial operation stage, and the operating capacity of alumina is gradually being released. In addition, the continuous decline in raw material caustic soda and coal prices has led to a downward shift in the production cost of alumina.