Aluminum producers shut down electrolytic aluminum production capacity

Domestic electrolytic aluminum production capacity is seriously surplus

It is reported that there is an indisputable fact that there is an excess of alumina and electrolytic aluminum in my country. Statistics from the China Nonferrous Metals Industry Association show that in 2012, my country's electrolytic aluminum production capacity reached 26 million tons, the actual output was 20.27 million tons, and the capacity utilization rate was 78%. This is already the highest year of electrolytic aluminum production utilization rate since 2008. . Statistics show that the output of electrolytic aluminum in April this year was 1.707 million tons, an increase of 9.96% year-on-year. My nonferrous network analyst Li Xun told reporters that the year-on-year increase in output was mainly due to the newly added production capacity of some smelters.

Li Xun said that recently aluminum prices have been below the cost line, and most smelters convert electrolytic aluminum production capacity into downstream products for sale. He said that the transformation of smelters in deep processing can play a certain role in alleviating the contradiction between supply and demand, but it should not be overly optimistic. Some people in the industry also pointed out that electrolytic aluminum is a pillar industry in certain areas. After enterprises reduce production, they may severely damage GDP, taxes, and employment.

The loss of aluminum smelting enterprises reached 31.7%

In recent years, international aluminum prices have been declining, while electricity prices, which account for 5% of production costs, have continued to rise. Overcapacity has resulted in increased vicious competition and overall losses in the industry. Statistics from the China Nonferrous Metals Industry Association show that in 2012, 89 of the 281 aluminum smelting enterprises above designated size were loss-making enterprises, with a loss of 31.7%, and the number of loss-making enterprises increased by 28 year-on-year; the loss of aluminum smelting enterprises was 11.35 billion yuan. , Accounting for 35.4% of the loss of non-ferrous metal companies above the designated size.

As the industry leader, Chalco suffered a huge loss of 8.234 billion yuan last year, a sharp drop compared with its 2011 net profit of 238 million yuan. In the first quarter of this year, its loss amounted to nearly 1 billion yuan, and the company began to frequently dispose of its aluminum assets.