The Development Advantages and Disadvantages of Alumina in Shanxi

Both from the national industry policy guidance and the market law of development, there is no denying that the concentration of alumina capacity is continuously rising. Large aluminum giant's ability to control the industry becomes stronger and stronger, and the competition on the market share makes alumina industry collectivization increasingly highlighted. What’s more, the reform for state-owned enterprises also accelerates the integrated development of alumina industry, especially on the condition of supply-side structural reform.

From the point of long-term development, the current global aluminum industry continues to weaken, but people are still more optimistic for prospects of aluminium. "Using aluminum instead of copper applied in wire and cable, " using aluminum instead of steel " in the application of automotive materials, new aluminum products and applications have a strong leading role on aluminum consumption. They can support the development of electrolytic aluminum industry, and indirectly increase the demand for aluminum raw material.

And from the analysis on the development advantages and disadvantages of alumina, Shanxi province has excellent comprehensive development advantages of alumina. For example, it has a strong advantage in energy use and bauxite supply, and at the same time, the raw material purchasing is very convenient there. Therefore, Shanxi has great extended advantages.

Of course, things has its two sides. There are advantages and there will be disadvantages. But in general, although alumina scale in Shanxi becomes larger and larger, but there are less local electrolytic aluminium companies, and the basic sales channels are still mainly depend on the northwest electrolytic aluminium companies. Therefore, in terms of alumina price, alumina manufacturers in Shanxi are more susceptible to the downstream aluminum smelters.