The provision of bauxite is still enough, but the price of it is difficult to improve. The Malaysian ban will be extended for three months and Indonesia also fails to lift bauxite exports. But because of the layout of domestic aluminium enterprises in overseas market, the provision of bauxite have not been greatly influenced. It’s 13.63 million tons of bauxite imports in the first quarter of 2016 and grow 15%. It’s mainly from Australia, Malaysia and Guinea, the import from Guinea is improved quickly. Worring about the ban, the import quantity from Malaysia is the most, it is up to 4.46 million tons, and the lowest price is only 40.65 USD/ton.
 

In the case of electrolytic aluminium shrinkage, the capacity of alumina is excess and the price of alumina grows. As alumina price return to full cost profitability, the production capacity is gradually recovered. aluminum oxide price is expected to rise slowly.

According to the statistics of national bureau, in 1-quarter, the alumina production reaches 14.35 million tons and NET import is about 1.218 million tons. The total alumina povision reaches 15.568 million tons, rate of conversion by 1.92, electrolytic aluminium metal ton of 8.108 million tons. If the annual alumina supply is converted by 1 quarters，it’s up to 62.27 million tons a year and grows by 2.5% than the last year.
 

Electrolytic aluminium is generally profitable, electrolytic aluminium production is 7.34 million tons in 1-quarter and it slide 2%. if don’t calculate the production capacity change situation in the late, annual output is about 30.58 million tons, is slide about 2.7%. As the aluminum price picks up, the profitable space is open. Judging from the recent announcement of the listed aluminium companies, many aluminium companies have achieved earnings and profits rose, it can be expected that the late commencement rate will pick up. The second quarter is expected to produce new production and capacity of 1 million tons.
 

Cost rises weaks the aluminium enterprise profit space. Although alumina prices have not continued to soar sharply which is owing to the supply of capacity reset, the electricity costs are not expanding as a result of rising energy prices. It still maintain average 145 USD/ton profit margin. The price of oil and coal is rebound, driving costs back. Due to supply-side reform, the domestic black system rises comprehensively, the power coal period price rises over 40%. The overall aluminum price upward in the early days did not bring a substantial increase in profits, but it maintains a smooth profit. Although the favorable price of electricity may decrease as the price of aluminium rises further, to make the cost increase about 87 USD/ton, but owned power plant accounted for about 80%%, the effect of the increase in electricity price has not been greatly influenced by overall energy price rises. At the same time, compared to aluminium ingot sales. each ton of aluminum liquid transports can save 116-175 USD/ton unequal, to make the profit space of electrolytic aluminium further improve. As a result, more and more new production capacity product aluminum liquid rather than aluminum ingots, it lead to the supply of aluminium ingot decreased.