According to Baichuan Yingfu’s industry tracking, China’s average tax inclusive full production cost of alumina stood at 2,697.10 yuan per metric ton in February 2026, down 51.3 yuan from January’s 2,748.4 yuan, representing a month-on-month decrease of 1.87% and a year-on-year drop of 18.02%. The downward cost trajectory was mainly driven by softer prices for key raw materials and stable energy markets.
In the raw material sector, domestic bauxite prices continued to weaken as inland alumina producers, still facing cost inversions, further trimmed procurement quotations. For imported bauxite, steady incremental supply from Guinea offset shortfalls caused by seasonal rains in Australia, keeping the global seaborne market well supplied and pushing spot prices lower. Caustic soda also posted mild losses amid weaker downstream buying and rising inventories. Thermal coal markets were quiet during the Spring Festival holiday, with prices flat to slightly softer, offering steady cost support for alumina refining.
As a critical feedstock for aluminum smelting and downstream fabrication, the sustained decline in alumina costs helps ease margin pressure across the aluminum value chain. For manufacturers focused on aluminum plates, rods, tubes and precision machined components, lower input costs support stable pricing, improved competitiveness and healthier profitability in global markets.
With raw material supplies remaining ample and energy costs contained, industry observers expect alumina costs to stay rangebound in the near term, providing a favorable cost backdrop for China’s aluminum rolling, extrusion and machining sectors.
Post time: Mar-19-2026