Hold on! Electrolytic Aluminum (Six Hi)

“In the first quarter of this year, the profitability of the electrolytic aluminum industry fell sharply. From January to February, 93 loss-making enterprises and a loss of 290 million yuan. At present, the actual loss of electrolytic aluminum industry is as high as nearly 80%, and the entire industry has reached the edge of losses. The operation of the electrolytic aluminum industry in the first quarter notified by the National Development and Reform Commission once again made electrolytic aluminum a focus of attention both inside and outside the industry. Right and wrong, stormy. Electrolytic aluminum has experienced its former glory, and is also experiencing the bitterness of “blind expansion”. Today's electrolytic aluminum companies are experiencing life and death. How to go through this tactic is an issue that is facing all electrolytic aluminum companies. “The purpose of implementing the macroeconomic control policy of the country is not to make an industry fail, but to make the industry from big to strong, enhance international competitiveness, and achieve sustainable development.” Cao Baokui, director of industry consulting department of China Nonferrous Metals Industry Association Say. “Actually, the electrolytic aluminum industry will have a much better turnaround than next year, but the key is how it passed this year.” According to insiders, in the first quarter of this year, the capacity of the electrolytic aluminum industry only played 74%. By 2006, Chinalco’s alumina expansion capacity will be effective, and several other alumina plants are likely to be put into production. The alumina price is expected to begin to decline. By 2008, with the increase of domestic alumina supply, China's electrolytic aluminum industry will show a fundamental improvement. By 2010, Chinalco’s annual alumina production capacity will increase from 8.5 million tons this year to 11 million tons. Shanxi Jinbei Aluminum and 1.6 million tons of Guangxi Huayin Aluminum, which annually produce 1 million tons of alumina, will also be completed within the next year or two. In addition, Chinalco and Brazil’s Vale do Brazil’s joint-venture company with an annual production capacity of 1.8 million tons of alumina, and China’s Minmetals’ company in the United States to buy 1.6 million tons of alumina with annual production capacity will also be used for domestic electrolysis. Aluminum mills offer lower-priced raw materials for production. At the same time, with the current round of macro-control, electrolytic aluminum enterprises with small production capacity and backward production technology will be basically eliminated, the supply of electrolytic aluminum will be reduced, prices are expected to increase, and China’s demand for aluminum will continue to rise. It is foreseeable that the dawn of the electrolytic aluminum industry is at the front. After difficult adjustments and baptisms at this stage, China's electrolytic aluminum industry will surely enter a healthy development track, and it will surely usher in a new spring.