Electrolytic Aluminum Industry Gets Stuck in Losses

The low prices of aluminum causes huge losses to electrolytic aluminum industry.

 

Recently, the data published by MIIT (Ministry of Industry and Information Technology) shows that the total loss of aluminum smelting is 88.3 billion RMB, net loss reaching to 70.4 billion RMB in the first four months of 2014, increased by 38.9 billion RMB compared with the same periods last year. Form January to April, 2014, total output of electrolytic aluminum was 76.9 million tons. Stock of electrolytic aluminum was 1 million tons. Fixed asst investment in electrolytic aluminum was 10.3 trillion RMB, decreased by 35.9% from the same periods in 2013.

 

Experts show that for the influence of low aluminum prices and increasing cost, electrolytic aluminum loss seriously. In this year, the declining of aluminum prices is even harder for electrolytic aluminum. Besides economic environment, excess capacity in the other important reason resulting in aluminum prices declining. The total output of electrolytic aluminum was only 83.4 million tons in 2003, rising to 32.9 ten million tons.

 

Data from Shandong Province shows that the total activating capacity of electrolytic aluminum in Shandong is 53.25 million tons, accounting for 16.33% nationwide. Operating capacity is 46.5 million tons, accounting for 17.71%. Availability of capacity is 87.32% higher than average level of 80.53% nationwide.

 

Six industries having excess capacity includes electrolytic aluminum in Shandong. Shandong plans to weed out prebake cell whose electric current bellows 160 thousand ampere in 2015. In 2017, availability of capacity will reach to more than 80% and capacity will be controlled about 4 million tons. Experts consider that electrolytic aluminum manufacturers should expand to downstream, developing deep processing of aluminum materials, improving added value of products and expanding to other provinces or nations which having energy advantages.