SMM News, May 6: According to SMM data, the average all-in tax-included cost of the domestic primary aluminum industry in April 2026 rose by 1.5% month-on-month and fell by 0.6% year-on-year, mainly due to a mild increase in prices of raw and auxiliary materials during the period. In April, the supply gap of primary aluminum overseas pushed up LME aluminum prices. However, high domestic inventory put strong downward pressure on aluminum price upside. The monthly average price of SMM A00 spot aluminum (March 26 - April 25) edged up only 1.0% month-on-month. The profit margin of primary aluminum narrowed slightly by RMB 12 per ton to RMB 8,303 per ton, with the average profit surging 125.1% year-on-year. Calculated based on the monthly average price, 100% of the operational primary aluminum capacity in the domestic market remained profitable in April. Breakdown of Cost Components Alumina price dipped intra-month but monthly average climbed month-on-month SMM data showed that the monthly average SMM alumina index stood at RMB 2,736 per ton in the statistical period of March 26 to April 25, up 1.9% month-on-month. The overall operational alumina capacity stayed stable during the month, and prices bottomed out and rebounded. Driven by market rumors over the bauxite quota policy in Guinea, bullish market sentiment picked up moderately. Nevertheless, the relatively high price at the start of the month lifted the overall monthly average. Entering May, with newly commissioned capacity ramping up steadily, alumina output is expected to increase. Meanwhile, continuous inflows of imported alumina into the domestic market will further ease spot alumina supply. Given the pending clarification of Guinea’s bauxite policy, supply tightening may trigger a minor price rebound. Alumina raw material costs are expected to remain in a consolidating trend in April. Rising costs drive up prices of auxiliary materials Geopolitical conflicts in the Middle East pushed up international crude oil prices in April. Higher cost levels kept petroleum coke prices on an upward track, underpinning higher prebaked anode prices. Aluminum fluoride prices also moved higher in April amid rising raw material costs. Auxiliary material prices will maintain an upward trend in May, driving a further rise in the auxiliary material cost of primary aluminum and lifting the overall cost center slightly. Power prices stabilize, hydropower costs expected to drop entering wet season Power prices remained generally steady in April. As the market gradually transitions from the normal water period to the wet season starting in May, hydropower tariffs in some regions are projected to edge down, leading to a mild decline in the power cost of primary aluminum production. Overall, the weighted average all-in tax-included cost of the domestic primary aluminum industry edged higher in April 2026. The primary aluminum cost is expected to keep rising moderately month-on-month in May, with the average level projected at around RMB 16,200 - 16,600 per ton.

According to SMM data, the average tax-inclusive full cost of China's aluminum industry in April 2026 was up 1.5% MoM and down 0.6% YoY, mainly due to slight increases in both raw and auxiliary material prices during the period. Supported by cost factors, auxiliary material prices for prebaked anode and aluminum fluoride are both expected to rise in May, and aluminum cost is expected to continue to edge up.

SMM News, March 31 According to SMM data, the average tax-inclusive full cost of domestic aluminum industry in March 2026 rose 0.5% MoM and fell 5.7% YoY, mainly due to a slight rebound in alumina raw material costs during the period. In March, Middle East production cuts pushed up aluminum prices in and outside China. The SMM A00 monthly average spot price (February 26-March 25) rose 2.9% MoM, and aluminum profit margins expanded to 8,316 yuan/mt. Based on monthly average price calculations, 100% of China’s operating aluminum capacity was profitable in March. From the cost breakdown side: Alumina raw materials : According to SMM data, the monthly average of the SMM alumina index in March was 2,685 yuan/mt (January 26-February 25), up 2.4% MoM. During the month, total operating alumina capacity was basically stable, but the Middle East geopolitical conflict raised ocean freight rates for alumina and bauxite, and domestic alumina costs are expected to move higher. Futures prices drove spot prices higher, lifting the monthly average alumina price. Entering April, the upward momentum in spot alumina prices at month-end March appeared slightly insufficient. Some new projects are expected to come online in April or ramp up operating capacity, but as the base price at the beginning of the month was already at a high level, alumina raw material costs in April are expected to post a slight increase. Auxiliary materials market : In March, both prebaked anode and fluoride salt prices pulled back, lowering aluminum auxiliary material costs. Entering April, the Middle East geopolitical conflict raised international oil prices, and higher costs continued to push up petroleum coke prices, which in turn supported higher prebaked anode prices. The April prebaked anode tender price at a large aluminum plant in Shandong rose 300 yuan/mt MoM; for aluminum fluoride, prices are also expected to rise significantly in April due to higher raw material costs. Overall, auxiliary material costs are expected to increase significantly in April. Electricity prices : Electricity prices were generally stable in March. Entering April, power prices are expected to remain broadly stable, and aluminum power costs are expected to hold steady. Overall, in March 2026, SMM expected the weighted average tax-inclusive full cost of dometstic aluminum industry to rise slightly; in April, it was expected to increase significantly MoM, with the average at around 16,150-16,550 yuan/mt.

[SMM Aluminum Alloy Daily Review] ADC12 prices adjusted strongly today, with mainstream producers generally raising quotes by 300-400 yuan/mt, mainly driven by stronger primary aluminum prices and the rapid rise in aluminum scrap costs. Enterprises mostly followed the trend and increased their quotes, with cost support proving significant. However, demand remained relative

According to SMM data, the average tax-inclusive full cost for China's aluminum industry in November 2025 was 16,057 yuan/mt, up 1.1% MoM but down 21% YoY.

At the 2025 SMM (2nd) Global Renewable Metal Industry Chain Summit - Main Forum hosted by SMM Information & Technology Co., Ltd., Allen Cui, Director of SMM Nonferrous Consulting, shared insights on the topic of "Prospects for the Development of the Global Secondary Metal Industry."