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Newssummary: Chinese Aluminum Smelters Suffer, But Processors Heap Profit
May 15,2015 08:49CST
industry news
Source:SMM
Many aluminum smelters in China are suffering losses, while aluminum processors make big money, caijing. com reported.

 

SHANGHAI, May 15 (SMM) – Many aluminum smelters in China are suffering losses, while aluminum processors make big money, caijing. com reported. 
 
Chalco, China’s top aluminum producer, swung into its largest-ever net loss 16.2 billion yuan ($2.6 billion) in 2014. Yunnan Aluminum Co., another large aluminum smelter, also suffered a loss of 467 million yuan ($76 million) last year. 
 
China Zhongwang Holdings, the country’s leading industrial aluminum extrusion manufacturer, reported a net profit of 2.48 billion yuan ($410 million) last year, up 16.5% from a year ago. Xingfa Aluminum Co., one of China’s oldest construction aluminum extrusion producers, also posted a net profit of 224 million yuan ($37 billion).  
 
 
The aluminum industry has been mired in severe overcapacity for years, leaving aluminum prices sluggish. 
 
Aluminum processors make money primarily from processing charges – money charged for turning aluminum ingot to finished products. Fortunately for processors, weak demand in depressed property market is counterbalanced by strong overseas demand and demand in transportation sector, the media added.  
 
This explains the divergence between the upstream and downstream sectors across the aluminum value chain.
 
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