The sudden surge in oil prices, especially the sustained rise, has led to strong expectations of increased costs for the alumina industry. The most critical impact lies in ore, primarily due to the more direct and rapid increase in shipping costs. Preliminary estimates suggest that every $5 increase in the landed ore price will raise the overall cost of alumina by over 100 yuan. It’s important to note that imported ore is currently primarily sold under long-term contracts, and their implementation needs close monitoring. If shipping costs accelerate and remain high, contract fulfillment efficiency is expected to be affected. Simultaneously, the impact of rising oil and gas prices on the energy costs of alumina production will also gradually become apparent.
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