More than 90% of electrolytic aluminum of the factory loss,aluminum industry of China reported losses 21 billion yuan in the first quarter

Source: ifeng.com posted: 2014-4-30 16:48:37

Chinese aluminum April 29th evening released a quarterly, subject to theovercapacity of electrolytic aluminum, electrolytic aluminum and alumina salesprices continued to decline, the first quarter net profit China aluminumattributable to the parent company for the loss of 2157000000 yuan, compared with the same period in 2013 increased 1181000000 yuan loss.

Announcement shows, this year China aluminum main products electrolytic aluminum and alumina selling price than the same period last   year decreased by 10% and 5%, this also leads to the losses of the company increased by about 1300000000 yuan. Especially since 2014, the aluminum price once fell to 12500 yuan and stagnant, a history of nearly 20 years low, coupled with the rising of human, material and   transportation cost, the majority of enterprises in the industry suffer unspeakably, loss of a quarter of domestic electrolytic aluminumenterprises have more than 90%. China aluminum early implementation of theflexible production of 800000 tons of alumina and 600000 tons of electrolytic aluminum to stop, it is also the market move.

But on the other hand, Chinese aluminum cash flow and cost etc. the production operation index has improved, two indicators were higher than the same period last year a marked improvement. China aluminum a quarter cash flow net inflow of 155000000 yuan, compared with the same period last year increased by 1246000000 yuan; a quarter of the leading products of electrolytic aluminum andalumina production cost were decreased by 3% and 7%; sales charges,management fees, finance charges totaling over the same period last yeardecreased by about 10%; the purchase of fixed assets and other long-termassets spending cash flow is lower than the same period last year about 400000000 yuan, down by 17%. Chinese aluminum self-help measures did notstop loss, but it enhanced the compressive capacity market.

As the industry's leading enterprises, an important barometer of developmentChina aluminum performance is also industry. Although Chinalco in 2009 hasopened for the financial crisis and excess capacity of the several rounds ofreform, hoping to reduce the cost by adjusting the development strategy, the industrial product structure and strengthen the management, implementation ofenterprises turn around, but growing industry structural overcapacity electricityprices continue to rise, and other factors to and make the most of the electrolytic aluminum industry, enterprises including aluminum, suffer unspeakably.According to the analysis, nonferrous metal association statistics in 2013, the formation of electrolytic aluminum production capacity of 32000000 tons, the totalaccounted for nearly 50% of global capacity, far more than the national "1025" planning objectives of 24000000 tons. In 2013, the actual production of electrolytic aluminum 21940000 tons, production capacity utilization rate of 68.56%, the excess rate of more than 30%, or even more than the steel industryovercapacity. In excess capacity and net electricity price two high attack, in the aluminum companies can only swallow the bitter fruit of huge losses.

On the face of strategy of the current market, China aluminum related to ChineseSecurities News reporter said, 2014 is the crucial period is China aluminum to achieve weight adjustment, will strive to achieve in 2015, nature take off tired target through readjustment and reform, not because the business cycle fluctuations, the re emergence of a loss, be cost competitive industry leading.Specific measures for the tired, the source said, the company will in accordance with the aluminum company central on the resolve of overcapacity and the requirements of the initiative to production capacity of the arrangements, and resolutely shutting down part of the elimination of backward production capacity,adjust and optimize the part of an existing production capacity, increase investment in electrolytic aluminum plant, direct purchase of electricityenterprises, promote the significant competitive advantage project, exploring themixed ownership and joint venture cooperation mode, transfer part of the capacity to overseas energy resources rich region, a number of new profit growth point in the stop loss point at the same time.