Yunnan Aluminum Co., Ltd. recently released its Q1 2025 performance report. According to the announcement, the company achieved a total revenue of 14.411 billion yuan in Q1, up 26.89 per cent Y-o-Y. The net profit attributable to shareholders of the publicly listed firm was 974 million yuan, down 16.26 per cent Y-o-Y.
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Regarding the reasons for the company's revenue growth, Yunnan Aluminum stated that it was mainly due to the increase in sales volume and selling prices of aluminium commodities during the reporting period. Meanwhile, the operating costs increased by 33.38 per cent Y-o-Y due to the rise in raw material prices and sales volume of aluminium commodities during the reporting period.
From the perspective of futures prices, the main SHFE aluminium contract generally fluctuated upward in Q1. As of the close on March 31, 2025, the main SHFE aluminium contract closed at RMB 20,480 per tonne, with a quarterly increase of 3.49 per cent.
In terms of spot prices, according to SMM spot quotes, the SMMA00 aluminium spot quotes also generally showed an upward trend in Q1. As of March 31, the average spot price of SMMA00 aluminium was reported at RMB 20,560 per tonne, up RMB 790 per tonne from RMB 19,770 per tonne at the end of 2024, representing an increase of approximately 4 per cent.
In late January, coinciding with the Chinese New Year holiday, the unexpected destocking of aluminium ingot inventory in the first two weeks drove aluminium prices to continue to climb, reaching a high of RMB 20,550 per tonne during the session on January 20, a new high since December 2024. However, as downstream enterprises took holidays near the end of the year, weakening consumption exerted downward pressure on aluminium prices, which fluctuated downward under pressure. Nevertheless, aluminium prices generally showed an upward trend in January. In February, coinciding with the Chinese New Year holiday, aluminium ingot inventory buildup was slightly higher than the same period in history.
However, as downstream enterprises gradually resumed production after the holiday, aluminium prices maintained highs in February despite being in the off-season. By March, the aluminium market entered the traditional peak consumption season, with downstream demand gradually recovering. Coupled with the installation rush stimulated by the new PV policies in the past 1-2 months, aluminium consumption increased, and social inventory showed a destocking trend. Meanwhile, downstream demand also continued to rebound, driving aluminium prices to hold up well in early March. However, in late March, due to poor macro sentiment overseas, funds exited for risk aversion, leading to a decline in the futures market. Nevertheless, from a quarterly perspective, aluminium prices still performed well in Q1.
Turning to the current aluminium prices, according to SMM, the recent aluminium market has received support from improved macro environments both domestically and overseas, but bullish and bearish factors are intertwined.
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On the supply side, domestic aluminium capacity is approaching the ceiling, and the insufficient recovery of hydropower in Yunnan has exacerbated regional supply tightness, limiting the increase in aluminium ingot output. On the cost side, a sudden notice of production suspension was issued for mining areas in Guinea where mining licenses were revoked late last Friday, sparking market concerns about the supply of bauxite raw materials, which may push up alumina costs. However, the specific impact remains to be evaluated. The demand side is under dual pressures from domestic seasonal weakness and trade uncertainties, making significant growth in the short term unlikely. Inventories of aluminium ingots have fallen to a low level compared to the same period last year, and tight spot liquidity is supporting aluminium prices.
Overall, favourable macro conditions provide a floor for aluminium prices, and low inventories further strengthen price resilience. However, off-season pressure on the demand side limits upside room. In the short term, attention should be paid to the performance of domestic and overseas demand, as well as the supply situation of bauxite.
As of May 19, the spot quote for SMM A00 aluminium remained at RMB 20,220-20,240 per tonne, with an average price of RMB 20,230 per tonne.
Yunnan Aluminum has also been striving to improve the self-sufficiency rate of bauxite. Previously, the company stated that it is enhancing the self-sufficiency rate through the following methods: First, based on current exploration results, bauxite in Yunnan Province is mainly concentrated in areas such as Wenshan and Zhaotong, and the company will increase its efforts in bauxite development in Yunnan Province. Second, focusing on countries in Southeast Asia such as Laos, Indonesia, Vietnam, and Cambodia, the company will accelerate the acquisition of exploration rights for bauxite resources in the surrounding areas and resource exploration. Third, the company will expedite the processing of existing exploration-to-mining permits, ensure resource continuity, and safeguard the amount of ore available for mining.
Public information shows that during the reporting period, Yunnan Aluminum was mainly engaged in the mining of bauxite, production and sales of alumina, green aluminium, aluminium processing, and carbon materials for aluminium production. Its main products include alumina, prebaked anodes for aluminium production, graphitised cathodes, aluminium ingots for remelting, refined aluminium ingots for remelting, round and flat casting ingots of wrought aluminium and aluminium alloys, cast aluminium alloy ingots, round aluminium rods for electrical purposes, aluminium and aluminium alloy welding materials, etc. Meanwhile, the company actively expands its circular economy businesses, including the comprehensive utilisation of secondary aluminium, solid waste resources from aluminium production, and aluminium ash.
It is worth mentioning that according to the company's 2024 performance report, the company achieved a total revenue of 54.45 billion yuan in 2024, up 27.61 per cent Y-o-Y, hitting a record high since its listing. The net profit attributable to shareholders of the publicly listed firm was 4.412 billion yuan, up 11.52 per cent Y-o-Y.
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The company mentioned in its annual report data that it currently has a production capacity of 1.4 million tonnes of alumina, 3.05 million tonnes of green aluminium, 1.6 million tonnes of aluminium alloys and aluminium processing products, and 820,000 tonnes of carbon products. Throughout 2024, the company actively sought to increase its electricity load, seized opportunities, and achieved rapid production resumptions in aluminium production.
It promoted standardised production to enhance operational quality, achieving full coverage of standardised processes across the production lines of aluminium, alumina, and carbon products. The company achieved increased production and efficiency for its main products, producing 1.4088 million tonnes of alumina, 2.9383 million tonnes of primary aluminium, up 22.45 per cent Y-o-Y, 805,800 tonnes of carbon products, up 2.85 per cent Y-o-Y, and 1.2541 million tonnes of aluminium alloys and aluminium processing products, up 1.75 per cent Y-o-Y.
Yunnan Aluminum Co., Ltd. was also asked about the impact of new technologies on the future of the aluminium industry. In response, Yunnan Aluminum Co., Ltd. stated that in recent years, the aluminium smelting technology has developed rapidly, with significant breakthroughs in carbon-free anodes, inert anodes, high-end alloy rail transit, high-purity aluminium, 3C electronics, circular economy, and other areas. The impact on the future of the aluminium industry is mainly reflected in energy conservation and carbon reduction, energy efficiency improvement, cost reduction, industrial upgrading promotion, and green development facilitation.
When mentioning the highlights of the company's future performance improvement, Yunnan Aluminum indicated that in the future, the company will continue to leverage its comprehensive competitive advantages in the green and low-carbon entire industry chain, continuously optimise the value chain of the green aluminium industry, and further enhance the brand influence and market value of "Green Aluminum • At Yunnan Aluminum". It will strive to build a "benchmark for first-class green aluminium enterprises", reward investors with sound operating performance, and gradually increase the dividend payout ratio as the company's operating performance improves.
Note: This article has been issued by SMM and has been published by AL Circle with its original information without any modifications or edits to the core subject/data.
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