SMM Alumina Morning Comment: Last week, the weekly operating rate of alumina was lowered again, and the national total operating capacity of metallurgical alumina decreased to 87.3 million mt/year, with the weekly operating capacity down 700,000 mt/year MoM. However, the fundamental supply surplus of alumina has not yet reversed. According to SMM data, as of last Thursday, the total operating capacity of domestic aluminum was 43.88 million mt/year, translating to an alumina demand operating capacity of approximately 84.47 million mt/year. Theoretical demand increased slightly again but remained below actual operations. Supply side, domestic bauxite supply remained low with limited increments, while the increase in imported bauxite supply drove the total domestic bauxite supply higher. The fundamental supply and demand of bauxite may become more relaxed compared to the previous period, and bauxite prices are expected to remain under pressure in the short term. Meanwhile, downstream aluminum plants reported that alumina procurement is mainly executed through long-term contracts, and some plants that have conducted winter stockpiling plan to actively reduce inventory. According to SMM statistics, alumina raw material inventory at aluminum plants decreased by 44,000 mt WoW last week. In the short term, the circulating supply of alumina is expected to remain relatively loose, and alumina prices may continue to operate under pressure. Subsequent attention should be paid to changes in alumina operating capacity.

On 29 December 2023, the NDRC of China announced Catalogue for Guiding Industry Restructuring (2024 Version), which will be implemented on 01 February 2024 and replace the Catalogue for Guiding Industry Restructuring (2019 Version). Compared to 2019 version, there are some changes in nonferrous metals industries.

Aluminium is the second largest metal after steel in the world.