SHANGHAI, Oct 26 (SMM) – SHFE aluminium fell over 3% today. The average spot quotations of SMM A00 aluminium fell 790 yuan/mt from yesterday, down 14% from October 19.
East China market maintained discounts of 80 yuan/mt. The spot goods were adequate. Spot discounts in Gongyi stood at 70 yuan/mt against east China market, and at 150 yuan/mt against the stock market. But the decrease of spot prices exceeded 700 yuan/mt intraday. 

Declining coal prices continued to suppress aluminium prices and the inventory of aluminium increased 10,000 mt on Monday. The profits at aluminium plants shrank sharply as aluminium prices slumped, coupled with high costs. 

According to SMM data, the average domestic aluminium industry costs on October 22 was 20,567 yuan/mt. The spot price of coal remains high, and the prices of alumina and anodes are at high levels, and there is limited room for short-term cost collapse. According to current aluminium prices, the current aluminium capacity suffering losses is likely to exceed 25%.