70 billion electrolytic aluminum project shutdown shock wave

A document called the suspension of the proposed electrolytic aluminum project will be jointly issued by the eight ministries and commissions such as the National Development and Reform Commission and the Ministry of Industry and Information Technology. This document will have an impact on the proposed investment of 70 billion yuan of electrolytic aluminum. On April 14, the person who participated in the drafting of the document told this reporter that the document has been signed and will be issued immediately. The document was issued at the end of March, but it has to be postponed because it involves all parties' interests. Overcapacity is considered to be the direct cause of the “mind” of the eight ministries and commissions to stop the new project. According to the above-mentioned person, in the past two years, due to the excess of electrolytic aluminum in the market, the price of primary aluminum has been difficult to go up, and the market for electrolytic aluminum has “no price in the market”. The company intends to stop the proposed electrolytic aluminum project, and the companies affected by the impact include Chinalco, China Power Investment, and Shaanxi Nonferrous Metals. For these companies, their expansion plans may be ruined. However, Heng Kun, chief analyst of the non-ferrous metals industry of Essence Securities, believes that stopping the proposed project should be good news for the entire electrolytic aluminum industry, which will help the aluminum price rebound. The call was suspended on April 8. Su Bo, deputy minister of the Ministry of Industry and Information Technology, revealed at the industry internal meeting that the eight ministries and commissions, including the National Development and Reform Commission and the Ministry of Industry and Information Technology, would jointly issue a document calling for the construction of a new aluminum electrolytic project. It is reported that the NDRC and the Ministry of Industry and Information Technology have cleaned up the proposed electrolytic aluminum project from a report received by the State Council before the Spring Festival this year. According to the report, the operating rate of domestic electrolytic aluminum production capacity is only about 60%, and overcapacity is more serious. Since then, the Ministry of Industry and Information Technology has made a special report on this. The report quoted the National Bureau of Statistics as saying that last year the national electrolytic aluminum output was 15.65 million tons, while the production capacity reached 21 million tons, and there was overcapacity. Those who participated in the drafting of the document said that after receiving the report, the Ministry of Industry and Information Technology had informed the relevant experts of the Nonferrous Metals Industry Association and the major electrolytic aluminum companies, and finally determined that there was indeed an overcapacity of electrolytic aluminum in the country. In fact, since the beginning of this year, the National Development and Reform Commission has tightened the approval of new projects. *ST Guan Aluminum (000831) An insider said that after the Spring Festival, I have heard that some projects that are about to be launched have not been approved. In the past two years, due to the continued downturn in the price of electrolytic aluminum, domestic electrolytic aluminum producers have been accustomed to stop production and stop loss. In the fourth quarter of 2010, Henan Province and Guangxi Province respectively stopped production of 1.27 million tons and 420,000 tons of electrolytic aluminum capacity, totaling 1.69 million tons. But this year, domestic electrolytic aluminum prices have remained at around 16600 yuan / ton. This price gives electrolytic aluminum producers a higher profit margin. This puts the price of electrolytic aluminum in 2011 at the pressure of capacity resumption and commissioning of projects under construction. The reporter learned that most of the above-mentioned production capacity has been resumed, and it is expected that the output of electrolytic aluminum will increase by at least 10% in the second quarter. According to the aluminum department of the China Nonferrous Metals Industry Association, this has prompted some new projects in Xinjiang and Inner Mongolia to be launched. "Now the price of electrolytic aluminum is rising steadily. If there is a large amount of idle production capacity at this time, the projects under construction will be put into production, and the Xinjiang project will be launched. The price of electrolytic aluminum will fall back." The above-mentioned person said. The person pointed out that because the project under construction has been approved, the company has invested a large amount of funds in the early stage. If the loss is called, the interest is not well measured; and the proposed project is much easier to stop. In addition, since the electrolytic aluminum industry is a high-energy-consuming industry, it has been included in the blacklist of overcapacity industries. According to statistics, in 2011, there were 44 electrolytic aluminum projects planned to be built nationwide, with a capacity of 3.69 million tons under construction and a total production capacity of more than 20 million tons, with an amount exceeding 70 billion yuan. At present, the proposed electrolytic aluminum project in China is mainly concentrated in the western region, especially the electrolytic aluminum projects in the provinces with lower electricity costs such as Gansu, Qinghai, Xinjiang and Inner Mongolia account for 51% of the national electrolytic aluminum projects. It is understood that the companies involved in the proposed project include Chinalco, China Power Investment Corporation, Shaanxi Nonferrous Metals and Ningxia Jinning. Hi worry about what everyone in the impact, the CPI proposed new production capacity reached 390,000 tons, or will be halted. Among them, China Power Investment Corporation has a production capacity of 220,000 tons of Qingtongxia Aluminum, and China Power Investment Corporation has invested 170,000 tons of aluminum profiles. China Power Investment is currently the second largest producer of electrolytic aluminum in China. Other projects that may be suspended are also the proposed construction of 600,000 tons of Shaanxi Nonferrous Metals, Xinjiang Xinfa, 400,000 tons, Ningxia Jinning, 400,000 tons, and Zouping High-tech, 400,000 tons. 200,000 tons will be built, and Huohong Hongjun plans to build 350,000 tons, and Chinalco Guangxi plans to build 250,000 tons. Ningxia Jinning Aluminum-Magnesium New Materials Co., Ltd. completed the investment of more than 5 billion yuan in the first phase of 2010, 400,000 tons of electrolytic aluminum project. The company originally planned to start construction of a new phase of 300,000-400,000 tons of new capacity in June this year. Ningxia Jinning is affiliated to Hangzhou Jinjiang Group. An insider of the company revealed that there are no signs of the second phase of construction. The company's long-term plan is to expand production capacity to 1.2 million tons in the third phase. "Now the policy is so tight, I don't know if the second phase will not be built." The person worried. Yuan Li, spokesperson of Chinalco News and director of the Party Group's work department, said in an interview with this newspaper that the current domestic electrolytic aluminum industry has ample excess capacity, but it is still unclear about the planned capacity of 250,000 tons of Guangxi branch. At present, Qinghai Province has announced that it will no longer approve new electrolytic aluminum projects. At present, there are 10 electrolytic aluminum production enterprises in Qinghai Province, including Chinalco Qinghai Branch, Qinghai Qiaotou Aluminum and Electric Co., Ltd., Qinghai Changqing Aluminum and Western Mining ( 18.61 , 0.00 , 0.00% ) . Heng Kun said that this regulation is only for the proposed project and has no impact on the projects under construction. Therefore, it will not have much impact on the industry in the short term, but it will only have an impact on future investors. However, for producers with existing electrolytic aluminum capacity, they are generally welcome to stop new construction projects. *ST sales manager of Guan Aluminum said that the recent market is not very good compared to last year. "If the NDRC really stops the new project, I have hope for the market outlook," said the sales manager. *ST Guan Aluminum is affiliated to Minmetals Group. One of its main businesses is electrolytic aluminum, which has a capacity of 230,000 tons of electrolytic aluminum. Heng Kun said that stopping the new construction project will help the aluminum price rise. Since the economic crisis in 2008, the domestic electrolytic aluminum industry has fallen into a long-term recession. China's largest electrolytic aluminum producer, Chinalco, has fallen into huge losses. In addition to the economic crisis, the rapid expansion of a large number of non-"Chinalco" companies has led to overcapacity in the market, and the lack of aluminum prices is an important reason. An insider of Chinalco has told reporters that compared with some private aluminum factories, Chinalco does not have much competitive advantage under market economy conditions. Private aluminum plants are small but flexible; although Chinalco is large, it is heavy. The above-mentioned aluminum non-ferrous metals industry association aluminum said that the biggest beneficiaries of the stop will be large companies like Chinalco, which already have a lot of capacity, and the price is their biggest concern.  

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