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Five Departments of the State Council Work to Address Aluminum Overcapacity, Rusal Considers Shutting Down 81,000 Mt/Yr at Its Nadvoitsy Aluminum Smelter
Jun 3,2013 17:51CST
smm insight
Source:SMM
Guangxi’s Guangyin Aluminum signed an agreement with the Linchuan District government, Jiangxi, in January 2012 to establish an aluminum processing center in its Fubei Industrial Park.

SHANGHAI, Jun. 3 (SMM) -

Operations Scheduled to Start at Jiangxi’s Largest Aluminum Processing Center by Year’s End
Guangxi’s Guangyin Aluminum signed an agreement with the Linchuan District government, Jiangxi, in January 2012 to establish an aluminum processing center in its Fubei Industrial Park at a cost of RMB 5 billion. The facility will generate RMB 10 billion in revenues each year from the production of 400,000 mt of aluminum products. Extrusion trial runs are scheduled for July and full operations are expected later in the year.   

Five Departments of the State Council Work to Address Aluminum Overcapacity
On May 30th, five departments of the State Council held a symposium with fifteen aluminum smelters including Chalco. According to a source with knowledge of the symposium, the meeting involves capacity control, setting up funds to subsidize aluminum producers that pull capacity out of central and east China, introducing differential power prices, expanding aluminum application, substituting aluminum cable for copper cable, replacing wood with aluminum in construction and furniture and resumption of 5% import tariff. These measures shall be submitted for final approval.      

Danjiangkou Aluminum Halts 50,000 Mt/Yr in Aluminum Capacity
In order to minimize losses from sluggish aluminum markets and high electricity prices, Hanjiang Danjiangkou Aluminum halted 100 units of 200KA electrolytic cells on April 18, 2013, cutting aluminum capacity by 50,000 mt/yr. 

Aluminum Projects in Gansu’s Pingliang May Not Secure Final Approval
Pingliang Over 100 Billion Coal-Electricity-Chemical Smelting Circular Economy Industry Chain Program drafted by Gansu’s Pingliang city has been approved by Gansu’s provincial government. The program includes China Huaneng Group’s power generating units, aluminum, aluminum extrusion and deep processing project, which represents a total investment of more than RMB 45 billion. Besides, the program also includes Sinohydro Group’s 1 million mt/yr aluminum project.    

Nevertheless, some industry insiders understand that these aluminum projects may not be granted final approval given the current economic situation and severe aluminum overcapacity.  
 
Pingguo Aluminum Caught in A Dilemma
Chalco’s Guangxi Pingguo Branch is holding large stockpiles of alumina at hand while suffering huge losses from its aluminum business. This is a reflection of severe excess aluminum capacity at its parent company Chalco. 

Rusal Considers Shutting Down 81,000 Mt/Yr at Its Nadvoitsy Aluminum Smelter
Rusal is considering shutting down 81,000 mt of capacity at its Nadvoitsy aluminum smelter. Rusal previously announced that it would borrow EUR 150 million from VEB to upgrade the facility to produce higher value-added products. Part of the loans was used to acquire Ondskaya Hydroelectric to ensure stable power supply for the smelter.   


 

China aluminum overcapacity
aluminum projects in Gansu's Pingliang

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