en.Wedoany.com Reported - Recently, China's alumina industry has achieved a phased improvement in profitability, primarily driven by the decline in bauxite costs and the release of scale effects by leading enterprises. Data from Aladdiny shows that the price of bauxite purchased by alumina enterprises dropped from an average of 571 yuan/tonne in January this year to 526 yuan/tonne in April, reducing the ore cost from 1,514 yuan/tonne to 1,396 yuan/tonne, a decrease of 118 yuan/tonne. The industry-wide weighted average full cost fell simultaneously, from 2,667 yuan/tonne in January to 2,557 yuan/tonne in April, a reduction of 110 yuan per tonne.
As the core raw material for alumina production, bauxite accounts for 50% to 60% of its total cost, and its price changes directly affect corporate profitability. The continuous decline in ore prices since the beginning of this year has laid a solid foundation for cost reduction across the industry. Meanwhile, the market concentration of China's alumina industry is relatively high, with the top ten enterprises accounting for over 80% of production capacity. Leading enterprises such as Chinalco, Weiqiao Pioneering Group, Xinfa Group, Jinjiang Group, East Hope Group, and Bosai Group have maintained high capacity utilization rates by leveraging their comprehensive industrial chain layouts and stable production capabilities. In the first quarter of 2026, the capacity utilization rates of major enterprises remained above 88%, with Weiqiao Pioneering Group and Jinjiang Group approaching 100% full production. The full release of scale effects has effectively diluted unit fixed asset depreciation, management expenses, and energy consumption costs, further optimizing production costs.
Under the combined effect of declining costs and steadily rising prices, the profitability of the entire alumina industry has improved significantly. Aladdiny data shows that the theoretical average profit of China's alumina industry was 22 yuan/tonne in February 2026, rising to 154 yuan/tonne by April. In the short term, relatively ample ore supply will keep bauxite prices low, and the scale advantages of leading enterprises will continue to be released, suggesting the industry's phased profitability trend is likely to be sustained. In the long term, profit levels will still be influenced by factors such as bauxite prices, the alumina supply-demand balance, and changes in downstream electrolytic aluminum demand. Guinea's planned restrictive policies on bauxite may provide support for future imported ore supply and prices; as new capacity in China is gradually released, the supply-demand landscape may change. Against this backdrop, the group-scale advantages of enterprises remain one of the key factors for maintaining long-term market competitiveness.
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