This year,aluminum price  benefits greatly  from the structural  supply- side reform of the expected reduction.  Among the base metal, aluminum prices is  strong and in  the overall upstream.The recent aluminum price between CN¥13,700-13,900 / ton,  supported by the stable cost and the decline of inventory.

 
According to the producing plan, this year, electrolytic aluminum production capacity will  be  much higher than the demand increase,so it estimated that the aluminum price will be lower.  But the supply side of  reform will reduce   aluminum production capacity,thus supply and demand balance is expected to improve, supporting the  aluminum price.

The cost is rising  and selling prices  continue to decline.Thus the  profits quickly fell to the cost line,which  forces aluminum producers  cuts the production capacity. SMM data show that the reduction of aluminum is mainly concentrated in Shanxi and Henan, due to the environmental inspector and  the rising raw material  price.

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