Weekly Highlights Review of the Aluminum Industry (1.13-1.17)

  【Industry Focus】
  China and the United States officially sign the first phase of the economic and trade agreement
  On January 15th,US President Trump and Liu He,a member of the Politburo of the Central Committee of the Communist Party of China,Vice Premier of the State Council,and Chinese leader of the China US Comprehensive Economic Dialogue,signed the first phase of the China US Economic and Trade Agreement at the White House.The agreement text includes nine chapters:preface,intellectual property,technology transfer,food and agricultural products,financial services,exchange rate and transparency,trade expansion,bilateral evaluation and terminal settlement,and final terms.
  China's 2019 raw aluminum production decreased by 0.7%year-on-year to 3.04 million tons
  China's production of ten non-ferrous metals in December reached 5.31 million tons,an increase of 4.7%year-on-year;The total production in 2019 was 58.42 million tons,an increase of 3.5%year-on-year.In December,the production of raw aluminum(electrolytic aluminum)reached 3.04 million tons,a year-on-year decrease of 0.7%;The total production in 2019 was 35.04 million tons,a year-on-year decrease of 0.9%.
  The Ministry of Industry and Information Technology has released the 2020 Key Work Plan for Industrial Energy Conservation Supervision(labeled with aluminum)
  The Ministry of Industry and Information Technology recently issued a notice on the issuance of the"2020 Key Work Plan for Industrial Energy Conservation Supervision".The notice indicates that special supervision will be carried out on energy consumption in key high energy consuming industries and the implementation of tiered electricity pricing policies.Special supervision will be carried out on the implementation of mandatory unit product energy consumption quotas for key energy consuming enterprises in the non-ferrous metal industry,such as gold smelting,rare earth smelting and processing,aluminum alloy,copper and copper alloy processing.Conduct special supervision on the energy consumption situation of steel,cement,and electrolytic aluminum enterprises.Focus on monitoring the energy consumption exceeding standards and violating enterprises discovered in the 2019 supervision.Publicize the non compliant enterprises discovered by the supervision in conjunction with the local pricing authority,and implement the tiered electricity pricing policy in accordance with the law and regulations if there is no objection.
  In December 2019,China exported 478000 tons of unwrought aluminum and aluminum products
  On January 14th,data from the General Administration of Customs showed that China exported 478000 tons of forged and rolled aluminum and aluminum products in December,a year-on-year decrease of 9.3%.In 2019,China exported 5.73 million tons of forged and rolled aluminum and aluminum products,a year-on-year decrease of 1.26%.
  Canada's Second Double Anti Sunset Review of China's Aluminum Profile Industry Damage Final Judgment
  On January 13,2020,the Canadian International Trade Court issued an announcement,making the second anti-dumping and countervailing sunset review industry damage affirmative final ruling on aluminum profiles originating or imported from China:if the current dual countermeasures measures for the involved products are cancelled,the import of the involved products will cause substantial damage to Canada's domestic industry,so it is decided to continue to maintain the current dual countermeasures measures.

  【Enterprise Dynamics】
  Shandong Hongqiao New Materials Company was selected as a"leader"in energy efficiency in the key energy industry in 2019
  The list of energy efficiency"leaders"in the key energy use industry in 2019 was released,and Shandong Hongqiao New Materials Co.,Ltd.was listed,becoming the only selected energy efficiency leader in the electrolytic aluminum industry.
  The"China Aluminum Series"aluminum alloy products helped Nanchang ships enter the list
  On January 12,2020,the first ship of the Chinese People's Liberation Army Navy Type 055 destroyer,the Nanchang Ship,was incorporated into the fleet.Northwest Aluminum provides high-precision and high-quality aluminum forging products for the underwater sonar system of the Nanchang ship.The aluminum alloy materials used on the"Nanchang"ship,such as phased array radar plates and deck pattern plates,are made of"China Aluminum Southwest Aluminum".
  Mingtai Aluminum Industry:Expected net profit of approximately 939 million yuan in 2019,with an increase of approximately 90%
  Mingtai Aluminum Industry released its 2019 performance forecast:It is expected to achieve a net profit attributable to shareholders of the listed company of approximately 939 million yuan in 2019,an increase of approximately 444 million yuan or about 90%compared to the same period last year.During the reporting period,the proportion of high value-added products such as aluminum for new energy batteries,transportation,and automotive lightweight products steadily increased.
  The 300000 ton recycled aluminum project of Luoyang Xige Electric Automation Company landed in Mianchi
  On the morning of January 10th,Mianchi County successfully signed a contract with Luoyang Xige Electric Automation Co.,Ltd.for the 300000 ton recycled aluminum project.It is reported that the total investment for the 300000 ton recycled aluminum project is 750 million yuan,and the annual production of aluminum alloy is 300000 tons.The project construction is divided into two phases.The first phase is planned to start construction in November 2019 and be put into operation by the end of August 2020;The second phase plan is to have production conditions by the end of 2022.After the project is fully put into operation,it is expected to have an annual output value of 4.5 billion yuan and achieve an annual profit and tax of 660 million yuan.
  Eastern Company's Alumina Throughput Reached a New High in December
  In December 2019,Dongfang Company's bauxite arrival volume reached 1.03 million tons,with a total of 806000 tons shipped,a year-on-year increase of 644%and a month on month increase of 487%,breaking the historical record of 400000 tons held in October 2018 and doubling it.The annual throughput exceeded 3 million tons for the first time,reaching 3.1482 million tons,an increase of 89.7%year-on-year,reaching a new historical high.

  【Global Vision】
  Vedanta approved to participate in bidding for the sale of alumina by National Aluminum Corporation of India
  The Supreme Court of India has approved Vedanta's bid for India's National Aluminum Corporation's alumina sales targets.If Vedanta's bid is successful,the company's Jharsuguda alumina plant in eastern Orissa is expected to use raw materials after picking up goods at the Visakhapatnam port.In the previous fiscal year,Indian National Aluminum Industry produced 2.28 million tons of alumina and exported 1.24 million tons of alumina,mainly to the Middle East,Southeast Asia,and China.
  Norbelith's acquisition of Aleris Aluminum has been postponed
  Foreign media reported that the acquisition project of Aili Aluminum was delayed by three months due to lack of regulatory approval.The source said,"Although China has approved the transaction,the US and EU authorities are still under review and it is unlikely to complete the transaction before the originally scheduled deadline.
  Alcoa's Q4 year-on-year loss reversal
  According to the fourth quarter report of Alcoa,there was a global surplus of 600000 to 1 million tons of primary aluminum supply in 2020,with a global aluminum demand growth rate of 1.4 to 2.4%.In 2019,the global aluminum demand growth rate was negative at 0.4-0.2%,and the global raw aluminum gap was 1.1-900000 tons.In terms of the alumina market,there was a global surplus of 600000 to 1 million tons in 2019,and in 2020,there will be a shortage of 100000 to an excess of 700000 tons in global alumina supply.