China Aluminum Industry Market Monitoring Monthly Report

This report aims to constantly provide corporations with strategic references objectively by monitoring and analyzing a large sum of firsthand market data. It will enable corporations to fully handle the latest industry information, judge the market competitive environment, and adjust management and strategies in time according to monthly latest trend.

According to statistics from International Aluminum Institute, the international total output of primary aluminum in February, 2012 is 1.998 million tons, with a month-on-month decrease of 6.59%, and with a year-on-year increase of 2.46%; the daily average aluminum output is 68,900 tons, with a month-on-month decrease of 1.45% and with a year-on-year decrease of 1%. With the release of world’s aluminum capacity, it’s predicted the global aluminum market still faces the supply surpass problem. Moreover, with the continuing increase of electricity cost and other costs, the profit of global aluminum enterprises is dilute.

The statistics from China Customs shows, China’s total bauxite import volume is 4.6659 million tons, with a year-on-year increase of 112.26%. Indonesia is China’s major import country, and in February, the bauxite imported from Indonesia accounts for 81.6% of China’s total bauxite volume. In February, Indonesia confirms to forbid exporting metallic mineral, including nickel ore from 2014, which severely threats China’s bauxite import. It’s urgent to scatter the import sources of bauxite, arrange the foreign bauxite resources and strength to explore and develop domestic bauxite for China’s aluminum enterprises.

The data from Aladdiny shows, from January to February in 2012, China’s alumina output was 5.882 million tons, with a year-on-year increase of 10.7%; and the electrolytic aluminum output was 3.4843 million tons, with a year-on-year increase of 18.87%. In such a circumstance of weak demand, the increasing expanding of aluminum industry’s capacity and output results in supply surplus, which leads the aluminum enterprises sinking into a difficulty. At this special phase, it’s inevitable to accelerate to adjust the aluminum industry’s industrial structure.

On February 27th 2012, the Ministry of Industry and Information Technology (MIIT) released The “Twelfth Five-year” Plan on Industrial Energy Saving. The energy saving goals for alumina are: promoting the low grade bauxite high efficient manufacturing alumina technology, the high concentration of Bayer stripping slurry efficient separation technology, the Series production of alumina technology, etc. The energy saving goals for electrolytic aluminum are: promoting the new cathode structure aluminum cell, the new diversion structure aluminum cell, and high anodic current density of very large aluminum reduction cell. By 2012. The popularization rate of new cathode structure aluminum cell will reach more than 80%.

The aluminum industry has become an important investment object for domestic giant of all industries and private capital. Developing aluminum industry will become one of vital strategies for enterprise development. Based on the necessity of the development of aluminum industry, accordingly the competition becomes increasingly fierce. More and more excellent managements in aluminum enterprises should clearly recognize that a enterprise should accelerate to adjust its operational strategy and management idea, as well as follow and monitor the latest development trend and direction of industry, so as to acquire survival and development from this increasingly fierce competition environment.

Researches from international authoritative management institutes show that the traditional “annual” strategy and strategy adjustment can hardly meet the current development. Consequently, many large-scale new energy managers, especially foreign managers pay more and more attention to the timely strategy and strategy adjustment which base on latest industry development.

The 5 core tasks for Forward’s Aluminum Industry Market Monitoring Monthly Report are: firstly, dynamically monitor the monthly macro development environment of aluminum industry (including international economic environment, domestic economic environment, investment trading environment, etc.); secondly, by analyzing the latest issued industry policies, as well as upstream and downstream industrial chains, help managers to master the latest development trend and market spot of the whole industry; thirdly, the segments of aluminum industry and its sub-industries will be included in to one chapter, specially analyzing the investment development direction of the industry, to master the competitive trend, and the changes of balance of supply and demand from facet to point, so as to rapidly adapt to the development decisions of market changes; fourthly, by tracing and analyzing the project investment direction and financing situation of key enterprises in the industry, as well as the latest listing products, dissecting the changing directions of enterprise strategies; fully monitor monthly massive data of aluminum industry, then provide forward-looking some practical management strategies and suggestions for managers.

This report aims to constantly provide corporations with strategic references objectively by monitoring and analyzing a large sum of firsthand market data. It will enable corporations to fully handle the latest industry information, judge the market competitive environment, and adjust management and strategies in time according to monthly latest trend.

Here, we would like to express our sincere gratitude to State Information Center, Bureau of Statistics of China, International Information Research Institute, Chinese Academy of International Trade and Economic Cooperation, Tsinghua University Library, Development Research Center of the State Council and Beijing Essence Forward Research Center, for their great support when we conduct this report!

Qianzhan Business Information Co., Ltd. Industry Research Center
Monitoring Analysis Team of Aluminum Industry