[SMM analysis] the new production capacity project of pre-baked anode in 2020-2021 is gradually landing and the expansion trend in southwest China is obvious.

SMM July 15: SMM statistics: domestic electrolytic aluminum production capacity is expected to increase by more than 6 million tons in 2020-2021, of which 2.87 million tons are expected to be put into production in 2020 and 3.13 million tons in 2021. Mainly distributed in Yunnan, Inner Mongolia, Guangxi, Sichuan, Shanxi and other places.

Source: SMM

SMM believes that most of these new pre-baked anode projects are mainly supporting projects, mainly supporting new electrolytic aluminum plants in the future. According to SMM statistics, the new production capacity of electrolytic aluminum in China from 2020 to 2021 is 6 million tons, which is mainly concentrated in Yunnan, Guangxi, Inner Mongolia, Sichuan and other provinces. The production of new electrolytic aluminum projects will affect the current geographical supply and demand distribution of pre-baked anodes. In the future, the new anode production capacity will well improve the balance of supply and demand in Yunnan, Guangxi and other places. The prebaked anode enterprises in Shandong, Henan and other places have lost their competitive advantage due to transportation and other factors, coupled with the pressure on environmental protection, the inefficient production capacity will be further withdrawn, and the prebaked anode will follow the electrolytic aluminum industry chain to the southwest and northwest in the future. the advantages of joint ventures will become more and more obvious.