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.

[SMM Aluminum News Brief] The fundamentals of the prebaked anode raw material market were under short-term pressure, and cost support for prebaked anode prices loosened somewhat but remained relatively firm. Cost support for prebaked anodes was solid during the April cycle, and SMM learned that prebaked anode prices continued their upward trend in May. Going forward, close attention should be paid to changes in the supply-demand pattern and price trends of prebaked anodes and upstream raw materials.

[SMM Aluminum News] According to SMM, a large domestic prebaked anode sales company raised its base selling price for prebaked anodes by 269 yuan/mt MoM for May 2026. Regional selling prices were: north-west China (5,876 yuan/mt), north China (5,826 yuan/mt), south-west China (5,876 yuan/mt), and south China (5,876 yuan/mt).

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 Flash] SMM learned that the base selling price of prebaked anodes for April 2026 at a large prebaked anode sales company in China rose by 385 yuan/mt MoM. Regional selling prices were: north-west China: 5,607 yuan/mt; North China: 5,557 yuan/mt; south-west China: 5,607 yuan/mt; South China: 5,607 yuan/mt.

[SMM Aluminum Express] According to SMM, the base selling price for prebaked anode at a major domestic prebaked anode sales company for March 2026 dropped by 56 yuan/mt MoM. Regional selling prices were as follows: north-west China: 5,222 yuan/mt; north China: 5,172 yuan/mt; south-west China: 5,222 yuan/mt; south China: 5,222 yuan/mt.

SMM February 6: Prebaked Anode Market: Domestic and Export Prices Fall Together, Weak Cost Side Drags Down Future Market In February 2026, prebaked anode prices mainly declined. In the domestic market, a Shandong aluminum enterprise set its February 2026 procurement benchmark price at 5,229 yuan/mt, down 2% MoM. In the export market, according to SMM surveys, prebaked anode export order prices in February mainly fell, with declines concentrated in the range of $10-20/mt. Raw material side, since February, due to downstream aluminum carbon and anode material enterprises mainly restocking based on rigid demand, purchasing enthusiasm has been relatively moderate. Petroleum coke prices were generally stable with slight fall. Although post-holiday restocking provided some support, affected by supply-demand and cost factors, petroleum coke prices in February are expected to continue structural differentiation and an overall trend in the doldrums. In the coal tar pitch market, support from the cost side high-temperature coal tar loosened, and coal tar pitch prices mainly operated in the doldrums. Overall, the prebaked anode cost side was in the doldrums, and prebaked anode prices next month are expected to be slightly under pressure. Aluminum Fluoride Market: Tender Pricing Decline Drives Prices Down, Weak Supply-Demand Constrains Future Recovery The downstream aluminum benchmark enterprise's February 2026 tender pricing saw a decline, finally settling in the range of 10,480-10,550 yuan/mt, driving aluminum fluoride prices to generally follow with declines of 200-380 yuan/mt. Overall, the aluminum fluoride fundamentals failed to provide effective support for prices. Loosening costs combined with a weak supply-demand situation caused prices in February to fall under pressure. The supporting effect from the raw material side significantly weakened, further constraining market trends. The support from raw materials such as fluorite and sulphuric acid was limited. The core intermediate hydrofluoric acid market experienced weak supply-demand around the Chinese New Year, with an unclear pace for post-holiday operating rate and demand recovery, greatly weakening the cost transmission effect. On the supply side, although the current industry operating rate has declined somewhat, spot inventory remains sufficient. Post-holiday production resumptions by enterprises will further release capacity, increasing supply pressure. On the demand side, only slight recovery was achieved relying on rigid demand restocking by aluminum enterprises, lacking substantial incremental support. Under multiple constraints, aluminum fluoride prices next month are highly likely to continue their weak trend.

SMM According to SMM data, the average tax-inclusive full cost of China's aluminum industry in January 2026 dropped 0.6% MoM and fell 19.5% YoY. During the period, raw material costs for alumina and auxiliary material costs for prebaked anode declined, while electricity and aluminum fluoride costs increased, resulting in a slight pullback in total cost. The average SMM A00 spot price in January was approximately 23,641 yuan/mt (December 26, 2025–January 25, 2026), with the monthly average aluminum price rising 1,840 yuan/mt MoM. Aluminum profit margins expanded to over 7,500 yuan/mt. If calculated using the monthly average price, 100% of domestic operating aluminum capacity was profitable in January. Cost breakdown: Alumina raw material side, SMM data showed the average SMM alumina index in January was 2,667 yuan/mt (December 26, 2025–January 25, 2026), down 4.6% MoM. Domestic alumina inventory continued to build up during the month, and prices declined gradually. Entering February 2026, operating alumina capacity is expected to decrease due to maintenance and production cuts, but spot alumina supply remains relatively ample. Spot alumina prices are likely to remain under pressure in the short term, with the monthly average price projected to fall MoM. Alumina raw material costs are expected to decline. Auxiliary material market side, prebaked anode prices dropped in January, while fluoride salt prices rose MoM. In February 2026, both prebaked anode and aluminum fluoride prices are expected to decline, and auxiliary material costs are projected to decrease. Electricity prices side, entering the dry season, electricity prices in provinces with high hydropower shares such as Yunnan and Sichuan increased significantly in January, raising the average national aluminum electricity cost. In February 2026, electricity prices are expected to stabilize, and aluminum electricity costs are projected to remain steady. Overall, SMM expects the weighted average tax-inclusive full cost of the domestic aluminum industry in February 2026 to decline MoM, with the average ranging around 15,700–16,100 yuan/mt.

[SMM Aluminum Express] According to SMM, the tender price for prebaked anodes at a large aluminum smelter in Shandong Province in February fell by 95 yuan/mt MoM. The spot price for prebaked anodes in February 2026 was set at 5,229 yuan/mt, while the acceptance price was set at 5,261 yuan/mt.

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.