Electrolytic aluminum trapped "preferential electricity prices" will come back

Drying equipment

It was learned from a number of industry sources that some local governments are brewing a "preferential electricity price" policy that includes the electrolytic aluminum industry to help electrolytic aluminum companies out of their difficulties.

A few years ago, the phenomenon of collective losses in the electrolytic aluminum industry was once again staged, which made local governments have to lend a helping hand.

It has been learned from a number of industry sources that some local governments are brewing a “preferential electricity price” policy that includes the electrolytic aluminum industry to help electrolytic aluminum companies out of their difficulties.

“The electrolytic aluminum company is one of the pillar industries in Henan Province. Now the industry is very difficult. Henan Province has previously conducted research on some companies and may support electrolytic aluminum companies.” Jiao Zuowanfang (000612.SZ), an electrolytic aluminum enterprise in Henan Province, China A senior executive told the newspaper yesterday.

The company's management personnel revealed that it may include providing some preferentially-priced coal to electrolytic aluminum companies that have their own power plants, but the specific support policies are still unknown and they need to wait for policy documents.

My non-ferrous net analysts revealed to the newspaper yesterday that in order to reduce the cost of electricity used by electrolytic aluminum companies, the Henan Provincial Development and Reform Commission will, together with the Energy Bureau and the power company, form a direct power supply contract between the backbone electrolytic aluminum enterprises and the power generation companies as soon as possible. At the same time, by reducing the price of coal or providing subsidies, the cost of power generation companies will be reduced, and the linkage of aluminum prices will be implemented to mobilize the enthusiasm of power generation companies.

The output of electrolytic aluminum in Henan Province ranks first in the country, and the domestic market share reaches about 1/4. In the first five months of this year, the production and efficiency of the electrolytic aluminum industry in Henan province declined, the product prices were low, and the production capacity of nearly 500,000 tons of electrolytic aluminum was suspended.

According to my research on non-ferrous nets, the Henan provincial government plans to subsidize the electrolyzed aluminum enterprises in the area and initially plans to adjust 5-8 cents per kilowatt hour. The enterprises that received subsidies specifically include Shenhuo Aluminum, Zhongfu Group, Wanfang Group, Henan-Hong Kong Longquan, and Wanji Aluminum.

In the first quarter of this year, China Electrolytic Aluminum Corporation Zhongfu Industrial Co., Ltd. incurred a loss of 113 million yuan, which is more than the fourth quarter of last year. Although Jiaozuo Wanfang’s net profit attributable to shareholders of listed companies in the first quarter was 28.2877 million yuan, a year-on-year decrease of 54.56%, the aluminum owner industry was losing money.

Since the beginning of this year, the price of electrolytic aluminum has continued to decline. Not only electrolytic aluminum companies in Henan Province have suffered losses, but the national electrolytic aluminum companies are generally in trouble. China's largest electrolytic aluminum company, China Aluminum, even experienced a loss of 1.088 billion yuan in the first quarter.

In order to prevent further losses of enterprises, in addition to Henan Province, according to a number of industry sources, other electrolytic aluminum production areas such as Guangxi are also brewing policies to support electrolytic aluminum enterprises, the most important is the price of electricity subsidies.

The cost of electricity accounts for about 40% of the cost of electrolytic aluminum, which is the biggest factor constraining the profitability of electrolytic aluminum. Last year, some provinces even raised their electricity prices twice for the electrolytic aluminum industry. In particular, since December 1st last year, after the National Development and Reform Commission raised the tariff, the national average electricity sales price has been increased by 0.03 yuan/kWh, further increasing the degree of losses in the electrolytic aluminum industry.

While domestic electrolytic aluminum companies have encountered difficulties, the foreign electrolytic aluminum industry has not been spared. On May 4, the German aluminum smelter Fuld Aluminum Plant, which produces approximately 115,000 tons of aluminum per year, initiated bankruptcy proceedings, but the business will continue to operate and will seek reorganization. With the decline of corporate profits and even the appearance of losses, foreign electrolytic aluminum companies have reduced their production in depth and even considered the direct stripping of aluminum assets from a long-term perspective.

However, due to the different energy costs in different regions, the operating rate of the domestic electrolytic aluminum industry is still at a high level, and the industry has not experienced a large area of ​​production cuts. Antaike analysts said that the southern region gradually entered the wet period, and under the support of local governments, electrolytic aluminum production capacity that had been discontinued before Guangxi and Guizhou was gradually resumed production. New capacity for electrolytic aluminum production in the Yunnan region gradually started, and in addition, Northwest China started before. The electrolytic aluminum production capacity is still gradually put into production.

Our steel poles are made from quality sheet through bending, forming, automatic welding and hot galvanization. We can reach one-run machining length of 14m and can bend sheet of thickness up to 45mm. We adopt advanced welding procedures, automatically weld main joints and reach rank-II welding quality. We have got 500kV Transmission Line Tubular Tower Quality Certificate from Power Industry Steel Tower Qualified Inspection & Test Center from 2009 year.


Transmission Line Steel Tubular Tower

Transmission Line Steel Tubular Tower, Transmission Line Tower, Steel Tubular Tower, Mono Steel Tower

Jiangsu Xinjinlei Steel Industry Co., Ltd. , http://www.steel-pole.com