With the dynamic down production costs, domestic aluminum prices down further. Yesterday, the main Shanghai aluminum futures fell 115 yuan to 12,590 yuan per ton, the highest since the listing of species to a new low. Analysts said the market had been in a electrolytic aluminum products and raw materials prices down round of the situation, if the lower reaches of consumer demand can not be fundamentally improved and stabilized prices of short-term unlikely.

     13000-14000 yuan in the domestic aluminum price range, after more than 1 month sideways finishing in last Thursday drop all of a sudden 260 yuan, 13,000 yuan in one fell swoop through the important psychological support costs, as of yesterday, the main Shanghai aluminum futures contract closed at 12,590 in Yuan / ton.

     It is understood that the cost of production decline, falling all the way aluminum is an important reason. China International Futures analyst Liu Xu said that the recent downward slightly in some areas of electricity, while the market price of alumina is also lower than 1900 yuan / ton, the average production cost of electrolytic aluminum industry has been reduced to 13,000 yuan / tons, which opened the aluminum Ingot prices of the space. Against this background, electrolytic aluminum enterprises in the future for raw materials, product prices lower expectations and take the initiative to cut prices and increase sales in the spot market, and at the same time in the futures positions on the establishment of long-term hedge against inflation, they form a pattern of the current market.

     Liu Xu, along with the current domestic oil and coal prices have fallen substantially in the electrolytic aluminum industry has a plant owned enterprises have been the basis of price. At the same time, as the cost of another chunk of the price of alumina, from the previous 3,000 yuan / ton down to less than the current 1900 yuan / ton, which makes corporate cost pressures eased. Therefore in the short term, the market is still difficult to significantly reduce the supply, in particular the substantial increase in stock market futures, which will exert tremendous pressure on the domestic aluminum prices. According to Liu Xu estimated that the latter part of the domestic electrolytic aluminum industry is expected to average production costs down to around 12,500 yuan.