Aluminium industry of Shandong start to hibernate

Alumina output cut 6 million tons

Alumina output in Shandong, which accounted for 1/3 of China¡¯s total amount, has been cut by 6 million tons; and electrolytic aluminium would be cut by at least 3 million tons in the country in order to reach coordination of demand and supply.

Shandong enterprises to hibernate

Affected by aluminium futures price in the country, Shandong aluminium enterprises started to hibernate.

At least three years needed for aluminium industry to turn over

Data from Tianjin Nonferrous Metals Market showed that Shandong aluminium ingot price of October 28 was 13650 yuan/ton, up 100 yuan than the 27th; while the price in mid-August was 17890 yuan/ton. The aluminium price was twisting dramatically. 

Experts said that decrease of electrolytic aluminium price and market demand since H2 moved the whole electrolytic aluminium industry into hibernate.

Data showed that nonferrous metals witnessed great fall during Southeast Asia¡¯s finance crisis in 1997 when copper, aluminium and gold fell 50%, 36% and 20% respectively, and only to recovered in June 1999.

Experts further predicted that electrolytic aluminium price of Q4 would follow the downtrend which would go on reduce the net profit and force aluminium industry into the integration period. It generally takes 12 months to walk out of bottom after the electrolytic aluminium industry started to losing money.

Some other experts said, however, economic cycle differs. While based on the present international and domestic situation, electrolytic industry can not walk out of the bottom in a short time, 3 years pessimistically.

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.