Alumina price cuts lead to adjustment of profits of aluminum industrial chain - Slurry Pump EHM

In less than two months, China's Chalco cut alumina consecutive four times the spot price

, from 2006 to 5650 yuan the highest / ton down to 2,500 yuan / ton, aluminum prices have been "cut." International and domestic alumina production capacity of alumina prices prompt release is the main reason for the central downward. In less than two months, China's Chalco cut alumina consecutive four times the spot price, from 2006 to 5650 yuan the highest / ton down to 2,500 yuan / ton, aluminum prices have been "cut." International and domestic alumina production capacity of alumina prices prompt release is the main reason for the central downward. The decline in alumina prices will widen the price difference between aluminum and alumina, for electrolytic aluminum enterprises to increase profits, but alumina and electrolytic aluminum production capacity due to the rapid expansion and export tax adjustment, electrolytic aluminum enterprises to benefit will not last long. The industry believes that industry profits will be bauxite and aluminum deep-processing at both ends of the transfer of alumina profit greatly reduced due to lower prices, electrolytic aluminum and alumina price cuts in the benefit will be followed by a result of capacity expansion is greater than the market demand and the profit decline. Aluminum is difficult long-term business is booming Alumina and aluminum of the input-output relationship is roughly 1.93:1, alumina constitutes a major cost of production of electrolytic aluminum. Alumina prices, for electrolytic aluminum enterprises is a major positive, in large part due to limited production since 2005, plans. December 1, 2005, 23 aluminum companies take the initiative to cut 10%. As the alumina prices lower, with limited production no longer exists, production capacity is gradually released. October 15, 2006, Guan aluminum stock announced at the right 75ka electrolyzer to produce a series of power transmission to start, but 10 months ago, precisely because of Alumina shares closed aluminum prices and the electrolytic cell to produce a series of cut-off . In addition, motivated by profit first half of 2006 has been renewed upsurge in the building of the domestic aluminum industry. Currently under construction, electrolytic aluminum production capacity is equivalent to half the existing capacity and electrolytic aluminum production capacity will undoubtedly result in a significant release of a relative surplus. More ominously, October 27, 2006, the Ministry of Finance and the General Administration of Customs jointly issued a circular, since November 1, 2006, the provisional tax rates on some imports and exports of goods to adjust. Of alumina 26 resource-type products to implement 0 ~ 3% of the imports of provisional tax rates, electrolytic aluminum and other nonferrous metal primary products, the implementation of 11 export 15% of the provisional tax rate, according to the above requirements, electrolytic aluminum and raised export tariffs from 5% to 15%, resulting in an increase of export cost about 2,000 yuan / ton. This undoubtedly will have great impact on the export of aluminum. Despite the spare production capacity of electrolytic aluminum and gradually start, but the Government's determination to control high energy-consuming industries doubt. Strong demand and constrained capacity growth will allow aluminum prices in recent times maintained at a relatively high level. At both ends of the transfer of profits to the industry To the lower reaches of view, the upward adjustment of tariffs on aluminum and aluminum alloy exports will once again pushed to the important position. On the one hand, blocked the export of primary aluminum due to aluminum price declines in the cost of production decline in aluminum production and business environment will be further improved; the other hand, experienced the September 14, 2006 the export tax rebate cut, the aluminum can obtain the export substantial profits, has also been a disguised form of exports of primary aluminum important factor. It is foreseeable that in future the export of aluminum will show a more robust situation, accelerate the adjustment assumes the role of a balanced domestic and international markets. If so, the momentum of the domestic aluminum exports after the throes of will over a period of rapid recovery and change. Upstream of view, the resources of aluminum will be reassessed. According to statistics, China's bauxite resources than the lack of tenure of existing bauxite reserves of 5.3 billion tons, accounting for only 2.3% of the world's reserves, ore than ten years, but the level of protection. At present, the accelerated production of alumina production capacity will increase the demand for bauxite, the aluminum industry chain bottleneck in the transfer from the alumina to the bauxite, bauxite prices faced by the revaluation, would significantly increase. Because of this, the National Development and Reform Commission of the measures to strengthen regulation and control is one of aluminum to encourage the use of foreign bauxite resources to co-ordinate the planning of major overseas resources development and utilization of alumina. Chalco shares and shares of two companies of color shared by the Chinese consortium of aluminum aurukun bauxite reserves of 500 million tons, it was borrowed from the rich bauxite resources in Australia. Yunlvgufen Wenshan Aluminum Holdings now has been more than 10 exploration, a large quantity of bauxite resources. Concerned about the integration of enterprise The production cost of electrolytic aluminum is the most important electricity and alumina, respectively, accounting for the cost of 50% and 35%. Aluminum in further strengthening the monopoly of alumina, while advancing to the aluminum industry, has to Baotou Aluminum Industry, Lanzhou, Jiaozuo Wanfang electrolytic aluminum and other large enterprises into the pocket, and with Guanlu shares established a close partnership. Instead of aluminum in the acquisition of the Department of Yunlvgufen Wenshan aluminum, the alumina industry is also involved and have a certain amount of bauxite from bauxite - alumina - aluminum - aluminum industrial chain will be extended and perfect. Another path is the power - Aluminum integration. Shenhuo share the cost of electricity is low and advance through the electrolytic aluminum industry, in the aluminum industry with more than 10% of the electricity cost advantage. Zhangze Electric Power, in its joint-venture subsidiary, has been 280,000 tons ALUMINUM Huaze electrolytic aluminum production capacity, based on the Zhangzhou power is still going on Hejin two sets 300,000 kW generating units supporting the construction and 200,000 tons of electrolytic aluminum project feasibility study . Laurel also the power advantage of the power to intervene alumina industry, invest heavily in Guangxi Baise Yinhai Aluminum Company.

Alumina price cuts lead to adjustment of profits of aluminum industrial chain - Slurry Pump EHM

By: xiao5096r

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