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 April 30: This week, aluminum fluoride enterprises mainly focused on fulfilling existing orders. As month-end approached, the market awaited new price guidance, trading atmosphere was sluggish, and prices remained stable. As of now, SMM aluminum fluoride prices closed at 10,980-11,900 yuan/mt; cryolite prices remained stable, with SMM cryolite quoted at 7,000-8,500 yuan/mt. Raw material side: Prices of core raw materials for aluminum fluoride diverged, but overall cost support remained relatively firm. This week, China's 97% fluorite powder delivery-to-factory prices weakened slightly, with mainstream transaction range at 3,300-3,500 yuan/mt and significant regional price spreads. Influenced by the steady recovery of operating rates in northern producing areas and continuous supplementation from Mongolian imports, the fluorite market's overall supply trended looser, with high-priced sources clearly under pressure in transactions. Demand side, some traders' bearish sentiment intensified, actively cutting prices to facilitate shipments and recover funds; coupled with the approaching holiday, wait-and-see atmosphere in the market was strong, in-market quotations became cautious, new orders lacked follow-through, and the focus was on digesting earlier orders. However, the significant rise in downstream hydrofluoric acid prices boosted fluorite producers' willingness to hold prices firm to some extent. Delayed resumption of operations at Zhejiang mine areas due to safety incidents and periodically low inventory also provided localized support, offsetting some downward pressure, but this was insufficient to counteract the bearish pressure from loose supply and sluggish trading, and fluorite prices overall showed small fluctuations with a weak bias. Aluminum hydroxide prices were under pressure, with the current SMM weighted average price at 1,660 yuan/mt, down 0.42% WoW. The sulphuric acid market was affected by Middle East geopolitical disruptions, with raw material sulphur circulation tight, coupled with firm downstream demand, sulphuric acid prices hovered at highs, and the market performed strongly. Overall, prices of core raw materials for aluminum fluoride diverged, the overall cost center fluctuated at highs, and production pressure on enterprises remained difficult to alleviate. The supply side exhibited a negative cycle of rigid cost increases—deeply pressured profitability—low willingness to operate. Recently, overall raw material costs for aluminum fluoride remained elevated, the industry fell into deep losses with cost inversion, enterprise production enthusiasm was significantly dampened, and the industry's overall operating rate dropped to a low of around 40%. Demand side, downstream operating aluminum capacity remained stable at highs, forming rigid floor demand for aluminum fluoride. Brief comment: This week, the aluminum fluoride market operated steadily overall, with prices maintaining the level after mid-month raises. Raw material side, fluorite and aluminum hydroxide prices weakened slightly, sulphuric acid prices fluctuated at highs, and comprehensive raw material costs remained elevated, continuously exerting significant operational pressure on producers. The supply side remained suppressed by high costs, with industry operating rates staying low and overall output unlikely to see significant increases; the demand side, although rigid demand from aluminum provided some support, downstream enterprises had limited ability to absorb costs, aluminum fluoride price increases faced resistance in passing through to downstream, elevated comprehensive production costs were difficult to effectively transfer, and most enterprises in the industry remained in losses. Currently, sulphuric acid prices remained on the strong side, cost pass-through to downstream still showed obvious lag, and industry profit recovery remained challenging. The current weak pattern of high costs, low profits, and low operating rates in the aluminum fluoride industry continued, the tug-of-war between sellers and buyers intensified, and under strong support from high raw material costs, producers showed clear willingness to raise ex-factory prices. Aluminum fluoride prices are expected to show a broad upward adjustment next month.

[SMM Aluminum News Flash] The aluminum fluoride market operated steadily overall this week, with prices holding at levels after the mid-month raise. Overall, the aluminum fluoride industry continued to face a weak pattern of high costs, low profits, and low operating rates, the tug-of-war between sellers and buyers intensified, and the short-term losses and negative industry dynamics remained difficult to alleviate.

SMM April 23: Trading activity among China's aluminum fluoride enterprises cooled this week, with aluminum fluoride prices holding steady. As of now, SMM aluminum fluoride prices closed at 10,980-11,900 yuan/mt; cryolite prices remained stable, with SMM cryolite quoted at 7,000-8,500 yuan/mt. Raw material side: Prices of core raw materials for aluminum fluoride diverged, but overall cost support remained relatively firm. This week, delivery-to-factory prices of 97% fluorite powder in China held steady, with mainstream transaction range at 3,300-3,550 yuan/mt and significant regional price spreads. Northern mining areas quoted lower, while southern main production areas maintained high prices supported by tightening supply. In terms of supply, safety inspections in China's main production areas continued to tighten, compounded by the impact of earlier safety accidents. Mines and beneficiation plants in south China maintained low operating rates, market supply circulation was tight, and the overall pattern showed rigid contraction with strong spot support. Demand side, downstream hydrofluoric acid enterprises saw profit margins squeezed by high-priced sulphuric acid, with most enterprises restocking on an as-needed basis and limited willingness to chase higher prices in bulk. Considering supply-demand fundamentals and cost transmission logic, SMM expects the fluorite market to hold up well in the short term, more likely to rise than fall. Aluminum hydroxide prices were under pressure, with the current SMM weighted average price at 1,667 yuan/mt, down 2.06% WoW. The sulphuric acid market performed strongly as Middle East tensions disrupted raw material sulphur circulation, which was tight, coupled with firm downstream demand, keeping sulphuric acid prices hovering at highs. Overall, aluminum fluoride raw material prices stabilized, but production pressure on enterprises persisted. The supply side exhibited a negative cycle of rigid cost increases—deeply squeezed profitability—low willingness to operate. Recently, prices of core raw materials such as fluorite, sulphuric acid, and aluminum hydroxide diverged, but the overall raw material cost center lingered at highs. Production pressure on aluminum fluoride enterprises remained unrelieved, with the industry mired in deep losses and cost inversion. Enterprise production enthusiasm was significantly dampened, and the industry's overall operating rate dropped to a low of 40-50%. Demand side, downstream operating aluminum capacity remained stable at highs, providing rigid floor demand for aluminum fluoride. Brief comment: The aluminum fluoride market operated steadily overall this week, with prices maintaining the level after the mid-month raise. Raw material side, fluorite prices were stable, sulphuric acid prices fluctuated at highs, and only aluminum hydroxide prices softened slightly. Overall raw material costs remained elevated, continuing to exert significant operational pressure on producers. The supply side was suppressed by high costs, with industry operating rates staying low and overall output unlikely to see notable increases. The demand side relied on rigid aluminum demand to support overall procurement, but downstream enterprises had limited ability to absorb costs, with upward transmission impeded and unable to effectively digest continuously rising comprehensive production costs. Most enterprises remained in a loss-making state. Currently, key raw materials such as fluorite and sulphuric acid remain on a strong trend, but cost pass-through has a lag effect, making it difficult for the industry to restore profitability. The aluminum fluoride industry continues to operate in a weak pattern characterized by high costs, low profits, and low operating rates. The tug-of-war between sellers and buyers is intensifying, and the situation of short-term losses and negative industry operations remains difficult to alleviate.

[SMM Aluminum News Flash] This week, raw materials for aluminum fluoride overall continued to fluctuate upward. Although aluminum hydroxide prices weakened somewhat, sulphuric acid prices surged significantly, hitting new highs repeatedly. The sustained rise in costs has notably intensified pressure on enterprises' production and operations.