Aluminium: Overseas Spot Premiums Began to Grow while Domestic Spot Premiums were yet to Rebound

SHANGHAI, Jul 21 (SMM) - According to SMM survey, the weighted average full cost of aluminium smelters in China stood at 17,505.3 yuan/mt in June. As the aluminium prices traded below 18,000 yuan/mt, the overall industry's loss-making capacity based on full cost exceeded 20%. On the whole, there is limited room for the cost of aluminium to shrink with the support from rigid demand. However, as the pressure on the supply exerted by the rapid growth of production capacity continues to exist with weak demand, the aluminium prices are expected to be unstable and the market players are suggested to trade with caution.