15 MAY 2015Shanghai Metal Market
Chinese aluminum smelters suffer, but processors heap profit
Edited by : AL CIRCLE
1 min read
Many aluminum smelters in China are suffering losses, while aluminum processors make big money, a local source reported.
Chalco, China’s top aluminum producer, swung into its largest-ever net loss 16.2 billion yuan ($2.6 billion) in 2014. Yunnan Aluminum Co., another large aluminum smelter, also suffered a loss of 467 million yuan ($76 million) last year.
China Zhongwang Holdings, the country’s leading industrial aluminum extrusion manufacturer, reported a net profit of 2.48 billion yuan ($410 million) last year, up 16.5% from a year ago. Xingfa Aluminum Co., one of China’s oldest construction aluminum extrusion producers, also posted a net profit of 224 million yuan ($37 billion).
The aluminum industry has been mired in severe overcapacity for years, leaving aluminum prices sluggish.
Aluminum processors make money primarily from processing charges – money charged for turning aluminum ingot to finished products. Fortunately for processors, weak demand in depressed property market is counterbalanced by strong overseas demand and demand in transportation sector, the media added.
This explains the divergence between the upstream and downstream sectors across the aluminum value chain.
Chalco, China’s top aluminum producer, swung into its largest-ever net loss 16.2 billion yuan ($2.6 billion) in 2014. Yunnan Aluminum Co., another large aluminum smelter, also suffered a loss of 467 million yuan ($76 million) last year.
China Zhongwang Holdings, the country’s leading industrial aluminum extrusion manufacturer, reported a net profit of 2.48 billion yuan ($410 million) last year, up 16.5% from a year ago. Xingfa Aluminum Co., one of China’s oldest construction aluminum extrusion producers, also posted a net profit of 224 million yuan ($37 billion).
The aluminum industry has been mired in severe overcapacity for years, leaving aluminum prices sluggish.
Aluminum processors make money primarily from processing charges – money charged for turning aluminum ingot to finished products. Fortunately for processors, weak demand in depressed property market is counterbalanced by strong overseas demand and demand in transportation sector, the media added.
This explains the divergence between the upstream and downstream sectors across the aluminum value chain.
Unlock full access – sign up for FREE.
Key benefits
Find exclusive data-driven insights and in-depth analysis
Get our daily newsletter delivered straight to your inbox
Access real-time and historical price trends from global indices
Post and respond to latest business leads
Stay ahead with alerts on learning tools
...and so much more!SIGN UP / LOGIN
Previous article
Alba participates in CRU’s 20th World Aluminium
Next articleVietnam’s spot aluminum demand picks up as China’s semis exports fall
Grow with
AL Circle
