Nonferrous industry still can hardly extricate from trough

Cost reduced from cut of factory price of some raw materials cannot prevent falling of demand, stopping nonferrous industry from extricating form trough.

Lately, Inner Mongolia, Ningxia, Yunnan governments successively reduced electric price by 0.03-0.06 yuan which equals to cost down of 4%¡«4.5%, in the favor of aluminium smelters by 550-600 yuan. However, suspend of new projects of real estate and auto industry in the country directly caused down of aluminium demand.

Analyst of. Merchants securities industry declared that by now, still many aluminium smelters did not receive any order for the next Q1, continuing weak demand on aluminium products exporting to Amercia and Europe.

Therefore, aluminium processors go on cutting output from substantial shrink of orders and the huge stock of aluminium products.

Though Yunnan and Guangxi excessively declared to purchase metals to support prices, metals are still down sharply in the weak market.

According to China Metal, the industry is in trough. Global demand of nonferrous metals is expected to fall in a higher speed in 2009. Domestic price of electrolytic aluminium will be in record low in 2009, to 9000 yuan/ton.

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