ADC12 Aluminum Alloy Prices Drop Amid Weak Demand and Increased Competition

Yunnan Aluminum stated on an interactive platform on April 22 that the company had construction completed of a 50,000 mt secondary aluminum production line; the company's aluminum alloy capacity was 1.61 million mt; and the company's aluminum products were widely used in fields such as automotive lightweighting, rail transit, construction, electric power, energy storage, machinery manufacturing, aerospace, electronics and electrical appliances, packaging, and durable goods.

Yinghe Auto's 30,000 mt aluminum alloy parts green digital-intelligent manufacturing project is currently progressing steadily and is expected to begin trial production in May. The project will build over 10 green, high-value precision aluminum alloy parts production lines, forming an annual production capacity of 30,000 mt of key NEV parts including electric drive units, reducer housings, steering knuckles, and control arms.

On April 21, Zhongfu Industrial announced that its board of directors had convened and approved the "Proposal on New Project Investment by a Wholly-Owned Third-Tier Subsidiary." The company's wholly-owned third-tier subsidiary, Qingchuan Zhongfu Secondary Aluminum Alloy Co., Ltd., planned to invest in the construction of a secondary aluminum alloy project with an annual capacity of 250,000 mt. The total project investment was 363 million yuan, funded through self-raised capital. The construction period was two years. Upon reaching full production, the project was expected to generate annual pre-tax revenue of 5.3015 billion yuan, average annual net profit of 23.02 million yuan, and an internal rate of return on total investment of 8.6% (after tax).