Aluminum Enterprises Confronted with Large Losses

(China Aluminum Network) Xiong Weiping, the General Manager of Chinalco said this winter will lasts long. This winter means the season also the difficult position that electrolytic aluminium industry confronted again. He said to the reporter electrolytic aluminium price started to drop since August this year.

As energy intensive industry coal and electricity price rise will leads to the increasing of electrolytic aluminium cost. According to Xiong Weiping, the average full cost for electrolytic aluminium industry were about 16,500 yuan/ton at present while only 15,500 yuan/ton for selling. He added that affected by international economy slowdown and rise in energy raw material price in domestic, aluminum industry will suffer selling price lower than production cost again and confronted with large losses.

It is worth noting that one side limited raw material leads to higher cost and China export 60% bauxite from outside; on the other side, electrolytic aluminium industry was faced with over capacity and shrank aluminum price rise space.

It is learned that many electrolytic aluminium enterprises started to reduce output already especially in December. The reduced electrolytic aluminium output were about 630 thousand tons owing to electrovalence rise and other reasons. Data shows only 83.6% electrolytic aluminium enterprises run production while 88% before October. According to analysts electrolytic aluminium enterprises may appear massive reduction later stage.

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