Investigation of Surplus PS Substrate Capacity Risk at Mingtai Aluminum

SHANGHAI, Aug. 1 (SMM) -- On July 25th, Henan Mingtai Aluminum Industry Company (Mingtai Aluminum) hoped to catch the last wave of investor enthusiasm to get listed on the Shanghai stock market amid intense competition in the aluminum processing sector. A company source told one reporter that Mingtai Aluminum planned to become listed as far back as 2006, but delayed the plan until now since profits from aluminum processing were poor and since the company failed to meet environmental protection requirements. Although the company painted an optimistic blueprint for investors, future profitability for the overall aluminum processing sector may not be as optimistic as Mingtai Aluminum projections.

Mingtai Aluminum mainly produces PS substrate, but current total PS substrate capacity in China is approximately 250 kt, with leaders Southwest Aluminum (Group) Company, Zhejiang Dongliang New Material Company, and Chalco Ruimin Company all producing this product.  Over capacity is making the traditional PS substrate market competition more intense and is cutting into profit margins. Many companies are beginning to build CTP substrate production lines, which have better potential development.