China's alumina sector sinks deeper into losses as costs stay sticky and output rebounds

According to Mysteel's data, China's weighted average full cost of alumina production stood at RMB 2,864.65 per tonne as of the end of August 2026, up about RMB 38.44 per tonne from the previous month. Currently, roughly half of the industry's capacity is running at a loss on a full-cost basis, and some producers have even begun posting cash-flow losses. With no signs of easing on the cost side and alumina prices continuing to slide, the sector's pressure shows no sign of relief. Looking back on August, the bauxite prices held steady. Bottlenecks in incremental domestic mine supply persisted, and the supply-demand picture remained largely unchanged. Beyond routine long-term contracts, alumina refineries struggled to secure spot volumes and could only supplement with imported ore. On the...