Ye Chiu’s profit in 2013 fall 45.24% YoY as lower prices of aluminium cut margins

Ye Chiu Metal Recycling (China) Ltd.’s total profit fell 45.24% in the year 2013 from the last year as the prices of lower aluminium cut its gross margins.

The largest producer of secondary aluminium in Asia made a total profit of 89.96 mn yuan ($15 million) per share in 2012, the company said Shanghai Stock Exchange.

Due to low aluminium prices and high costs of production, secondary aluminium industry faces a huge pressure in a short term said the company in their financial report for the full year and also added that they feel the scope for future development is healthy with the global economic recovery.

The company would make efforts to widen their domestic channel of buying as there are signs of continuous growth in China for recycling period for cars, e-waste and hardware, it said.

Ye Chiu sold 326,200 tons of alloy ingots of aluminium in 2013, 1.4% lower year-on-year while the gross margins fell to 2.83% from the last year due to an 8% year-on-year fall in LME aluminium prices, it said.

Presently, Ye Chiu has a total production capacity of 269,000 tpy in China and 51,000-tpy capacity at their Malaysian subsidiary company.