According to Baichuan Information, in May 2017, China's electrolytic aluminum production was 3.1824 million tons, a year-on-year increase of 18.10%. The year-on-year growth rate remained above 18% for two consecutive months and above 10% for eight consecutive months; The monthly average daily production in May was 102660 tons, an increase of 0.5% compared to the previous month. The cumulative production of electrolytic aluminum in China from January to May 2017 was 15.0731 million tons, a year-on-year increase of 16.95%. The release of supply side reform policies has continuously pushed up aluminum prices, but there is a time lag in policy implementation. Domestic electrolytic aluminum enterprises, stimulated by considerable profits, have a high enthusiasm to start production, which is the main reason for the increase in electrolytic aluminum production.

As the main raw material for electrolytic aluminum, the price of alumina fell to a low of around 2300 yuan/ton in May, which has already fallen below the cost line of most alumina companies. In addition, in May, the central environmental inspection team entered Shanxi, Shandong and other places, which led to a new round of production reduction in the domestic alumina industry, resulting in a shortage of domestic alumina supply. According to Baichuan Information, in May 2017, China's alumina production was 5.7025 million tons, with an assumed import of 200000 tons. Based on this, it is estimated that China's alumina supply gap in May 2017 was 419500 tons.