[Ferro-Alloys.com] Motivated by the reform of the supply side, the price of electrolytic aluminium has continued to rise recently. As the main raw material, the price fluctuation of aluminium will directly affect the cost price of smelting reduced calcium.

In the 1^st quarter of 2016, the reduced calcium market has been stable. In the 2^nd quarter, the market price has been up slightly. With the price rise of electrolytic aluminium higher than RMB2, 000/mt, the cost of calcium has raised RMB1, 200/mt.  According to the international analysis, the price of electrolytic aluminium is expected to return to RMB14, 000/mt, thus the cost of reduced calcium will further increase.

It is estimated by international supply and demand of nonferrous metals and the price trend of capital market, the price of reduced calcium will keep rising in the beginning of May. The price rise will be driven by the price of aluminium and the short term capital. However, due to the storage characteristics and overcapacity situation of metal calcium, the price rise of reduced calcium will not last for a long term. Furthermore, with the coming of the rainy season in north China, the price of reduced calcium will rise first and then fall in May.

• [Editor:Yang Xue Jiao ]