Alumina inventory continues to rise, supply pressure remains unresolved

Currently, domestic aluminum oxide market inventories continue to rise, and oversupply pressure remains significant. Some aluminum oxide producers in the north have temporarily reduced their output due to environmental regulations, but it is difficult to change the overall industry overcapacity. In terms of inventory structure, downstream electrolytic aluminum companies are continuously accumulating raw material inventories as shipments increase, while inventories at aluminum oxide producers’ plants have also slightly risen due to steady shipments and stable production. Futures inventories continue to grow steadily, driven by active trading in previous periods. Overall market shipments are stable, and long-term contract deliveries remain normal. In general, industry inventories are still high, and the pace of stock accumulation has returned to previous levels, with no substantial relief in supply-side pressure. Going forward, attention should be paid to the progress of aluminum oxide companies resuming production, with a forecasted gradual increase in operating rates. (Shanghai Nonferrous Metals Network)