April aluminum trend or aluminum industry development key

In late March and early April, domestic listed aluminum companies successively issued their 2012 annual reports or performance forecasts. The report shows that most of the companies’ profits have even fallen into a catastrophic loss. Analyst Luo Min said that if the aluminum industry is in a difficult situation this month, Still no improvement, then the aluminum company's losses this year may further expand.

In 2012, the company that bore the brunt of the huge losses was China Aluminum. As a leading company in the domestic aluminum industry, China Aluminum Corporation integrates mining, smelting, processing, sales, and research and development into one, and is the largest producer of alumina, primary aluminum and aluminum processing materials in the country. However, its annual report released on March 28 showed that the company’s net loss last year reached 8.234 billion yuan, becoming the most serious loss since the A-shares were listed in 2007, and the stock price has fallen by more than 90%.

The company side stated that the huge loss in its performance during the period was based on a number of factors: a serious overcapacity, a low price level, a decline in mineral grades, and restrictions on the supply of imported bauxite abroad.

In addition, Zhongfu Industrial, Chang Aluminum, Dongyang Aluminum, etc. all recently issued annual reports, saying that their performance last year suffered a loss or sharp decline in profits. Among them, Zhongfu Industry's operating revenue in 2012 decreased by 16% compared with that of 11 years, while aluminum and aluminum products decreased by 1,23529 million yuan year-on-year; Chang Aluminum's operating income decreased by 6.78% year-on-year, and the loss amounted to 72.58 million yuan; Dongyang Aluminum's operating income was 441,501,700 yuan. , 7.31% lower than the same period of last year.

At present, Yun Aluminum and Ming Tai Aluminum have not yet issued a complete annual report, but also announced that the performance is plagued by factors such as weak macroeconomic conditions and rising production costs. It is expected that profits will be significantly reduced.

In March at the Shanghai Copper-Alium Summit in March, the China Nonferrous Metals Industry Association’s Vice President, Documentary Army, stated that the aluminum industry is experiencing unprecedented difficulties and the industry has fallen into a loss.

Luo Min said that the aluminum industry is facing a series of bearish pressure, external due to the economic recession in Europe and the United States, the domestic economy is slowing down, overcapacity within the encounter, rising costs, lower prices, declining demand and so on. “For example, Chinalco’s huge loss is due in large part to the fact that its electricity costs are among the highest in the entire aluminum industry. The electrolytic aluminum production process consumes more than half of the electricity cost, plus the end of 2011. The country has raised the price of electricity, making the aluminum industry, which is already in a weak state, even worse."

For this year's aluminum industry will go from here, Luo Min admitted frankly, "The entire aluminum industry chain businesses are very concerned about the current price changes. April is the aluminum industry traditional consumer peak season, if the price rebounded this month, the downstream demand can have The recovery will be helpful to the recovery of market confidence. Conversely, if prices are still weak during the peak season and demand is still weak, the aluminum industry may have to maintain the downturn in 2012 this year."