Although the transaction prices of ores are sporadic and have not yet entered the production process, for the capital providers, the transparency and confirmation of market information have been strengthened. Based on the potential import ore price of around 75 to 80 US dollars, if the Jinyu Alumina enterprise increases the scale of application of imported ore again, the weighted full cost is expected to drop to around 3,100 yuan, and the cash cost is expected to drop to around 2,950 yuan. The decline in mineral prices is relatively more directly beneficial for enterprises planning to start new production to reduce costs, as their production is proceeding as planned. Judging from the market’s assessment of the expected operating capacity, this part of the capacity has already been included in the inventory statistics. The key lies in whether the capacity that has been reduced or cut in the near future will resume production due to the expected decline in mineral prices. This becomes the key force for further changes in costs in the later stage – adjustments in supply and demand – and further changes in prices.
