【Industry Focus】
From January to February 2020, the global primary aluminum market had a surplus supply of 684000 tons
rom January to February 2020, the global primary aluminum market had a supply surplus of 684000 tons, and in 2019, there was a supply surplus of 492000 tons. The global demand for primary aluminum from January to February 2020 was 10.4 million tons, an increase of 411000 tons compared to the same period in 2019. From January to February 2020, global primary aluminum production increased by 8% compared to the same period last year. Global primary aluminum production increased to 5.477 million tons in March, and was revised to 5.145 million tons in February.
Release of the sixth batch of import approval documents for scrap copper, scrap steel, and scrap aluminum in 2020
On April 23rd, the Solid Waste Center announced the sixth batch of import restrictions this year. Among them, 1030 tons of scrap aluminum, 2150 tons of scrap copper, and 1510 tons of scrap steel were approved. As of now, the solid waste center has announced a total of 529761 tons of import approvals for scrap copper, 476679 tons of import approvals for scrap aluminum, and 11230 tons of import approvals for scrap steel this year.
Notice of the Shanxi Provincial Department of Industry and Information Technology on Issuing the 2020 Action Plan for the Non ferrous Metals Industry in Shanxi Province
The Shanxi Provincial Department of Industry and Information Technology has formulated the "2020 Action Plan for the Non ferrous Metals Industry in Shanxi Province", which focuses on the supply side structural reform and the three major varieties of aluminum, magnesium, and copper. It focuses on building an innovative ecosystem, creating characteristic industrial clusters, improving and upgrading the industrial chain, promoting industry digital transformation, implementing green and low-carbon transformation, cultivating leading backbone enterprises, and laying out major projects, Promote the high-quality development of the non-ferrous metal industry in Shanxi Province to a new level.
At the end of March, China's inventory of recycled aluminum alloys increased by 20.21% month on month
At the end of March, China's inventory of recycled aluminum alloys was approximately 55000 tons, an increase of 20.21% month on month and a decrease of 1.97% year-on-year. At the end of March, the inventory of recycled aluminum alloys in Jiangsu region was approximately 12000 tons, an increase of 6.13% month on month; The Zhejiang region is approximately 11000 tons, with a 100% increase compared to the previous month; The Guangdong area is approximately 9875 tons, an increase of 46.73% month on month; The Chongqing area is approximately 3100 tons, an increase of 6.9% month on month; The Shandong area is around 1934 tons, a decrease of 41.39% compared to the previous month.
Guangxi Baise will accelerate the construction of a comprehensive three-dimensional transportation network and create a new aluminum industry base between China and ASEAN
The Development and Reform Commission of Guangxi Zhuang Autonomous Region and the People's Government of Baise City held a press conference on the 21st at the Guangxi Press Conference Hall to interpret the "Implementation Plan for the Construction of Guangxi Baise Key Development and Opening Pilot Zone". Related to the aluminum industry are: strengthening energy facility construction and external cooperation, expanding market-oriented electricity trading, accelerating the pilot reform of incremental distribution business, and implementing the transformation and upgrading of urban and rural power grids; Build an internationally competitive China ASEAN emerging aluminum industry base, support the construction of advanced aluminum manufacturing innovation centers, and China ASEAN (Baise) aluminum product warehousing and trading centers.。
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Enterprise Dynamics】
*ST Zhongfu has a net profit of 104 million yuan in 2019, and Guangyuan Linfeng plans to fully put into production in June
*ST Zhongfu's 2019 annual report shows that during the reporting period, it achieved a revenue of 5.519 billion yuan, a year-on-year decrease of 53.03%; The net profit attributable to shareholders of the listed company was 104 million yuan, which turned losses into profits compared to the same period last year. The company's electrolytic aluminum production capacity transfer Guangyuan Linfeng aluminum power project began production in November 2019 and is planned to be fully put into operation by June 2020. The Guangyuan High Precision Aluminum Project is scheduled to begin production in July 2020.
China Zhongwang Spin off Liaoning Zhongwang and Zhongfang Real Estate Asset Restructuring Approved by the Shareholders' Meeting of Zhongfang Real Estate
On April 22nd, Zhongfang Group held its first extraordinary shareholders' meeting in 2020 to vote on matters related to major asset restructuring. According to the announcement, all proposals at this shareholders' meeting have been approved by a high vote, and thus substantial progress has been made in the restructuring of China Real Estate Corporation. It is understood that the target assets to be included in this restructuring are 100% equity of Liaoning Zhongwang Group, a leading domestic industrial aluminum extrusion enterprise. The successful approval of the shareholders' meeting reflects the recognition and expectations of the shareholders of the listed company for this restructuring.
Tianjin Ruixinchang Technology Co., Ltd. is listed on the Shenzhen Stock Exchange Growth Enterprise Board
On the 21st, Tianjin Ruixinchang Technology Co., Ltd. (stock code: 300828, abbreviated as Ruixin Technology) was listed on the Shenzhen Stock Exchange Growth Enterprise Board. The bell ringing ceremony was held at the Tianjin Science and Technology Financial Center in Tianjin Binhai High tech Zone. Ruixin Technology was founded in 2004, mainly engaged in the design, research and development, production and sales of industrial precision aluminum alloy components, which can be divided into power electronic equipment radiators, automotive lightweight components, automation equipment and medical equipment precision components.
Liulin County, Lvliang City and Shandong Xinfa Group Hold a Strategic Cooperation Signing Ceremony
On April 19th, Zhang Gang, Chairman of Shandong Xinfa Group, and his delegation visited Liulin County to inspect the coal electricity aluminum industry project and successfully signed a strategic cooperation intention letter. At the signing ceremony, Zhao Jianxi, Director of the Standing Committee of the County People's Congress and Secretary of the County Party Committee, pointed out that the signing of the letter of intent for strategic cooperation between the two sides marks a new step in cooperation. He hopes that both sides can carry out all-round cooperation, strengthen cooperation, complement each other's advantages, innovate cooperation models, and achieve a win-win situation. We hope that Xinfa Group can further investigate and understand Liulin, layout more high-quality projects in Liulin, and promote greater cooperation between the two sides. Liulin County will actively promote the implementation of strategic cooperation agreements, create a first-class business environment, provide high-quality government services, and promote fruitful cooperation projects.。
Rainbow Aluminum Industry's annual production of 100000 tons of large cross-section aluminum alloy profiles project has been completed and put into operation
On the morning of April 17th, the annual production of 100000 tons of large cross-section aluminum alloy profiles and high-precision aluminum alloy bars project of Baise Rainbow Aluminum Industry Co., Ltd. was completed and put into operation. The project covers an area of 150 acres and plans to build a billet production center, deep processing center, and supporting facilities. The total investment of the project is about 500 million yuan. After completion, it is expected to produce 100000 tons of large cross-section aluminum profiles and 200000 square meters of aluminum template products annually, with a monthly output value of over 150 million yuan.。
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Global Vision】
Egypt Initiates Investigation into Safeguard Measures for Imported Raw Aluminum
On April 23, 2020, the WTO Safeguards Committee released the Safeguards Notification submitted by the Egyptian delegation to it on April 22. On April 16, 2020, Egypt initiated an investigation into safeguard measures against the import of raw aluminum (Ingots, Billets&Wire Rod), including aluminum ingots, billets, and wire rods. The Egyptian tax numbers of the involved products are 760110, 760120, and 760511. According to Article 6 of the Safeguards Agreement, Egypt can implement temporary safeguard measures on imported products involved in the case. Stakeholders should register their responses, submit written materials, and apply for a hearing within 30 days of filing the case.
Q1 revenue of Alcoa decreased by 12.5% year-on-year due to the decline in alumina and aluminum prices
Alcoa's revenue in the first quarter was $2.381 billion, a year-on-year decrease of 12.5%. The main reason is the decline in alumina and aluminum prices, as well as the decline in sales. Alcoa's net profit attributable to the parent company for this quarter was $80 million, compared to a net loss of $199 million for the same period last year. The reason for turning losses into profits year-on-year this quarter is due to the sale of some non core assets such as waste disposal facilities. Due to the impact of a reduction in production at one of its aluminum plants in the second half of 2020, the company has lowered its annual shipment volume of aluminum profiles from 3 million to 3.1 million metric tons to 2.9 million to 3 million metric tons, while the expected shipment volume of bauxite (4.8-4.9 million tons) and alumina (13.6-13.7 million tons) remains unchanged.。
The new aluminum project will launch an Iranian aluminum production scale of 785000 tons
The Minister of Industry, Mines, and Trade of Iran has stated that a new aluminum project has been launched in the southern region of Iran, which is expected to surge Iran's aluminum production to 785000 tons. The project is located in Ramo Town, Fars Province, southern Iran, with a total investment of over 1.2 billion US dollars and a production capacity of 300000 tons of aluminum ingots.
