Weekly Highlights Review of the Aluminum Industry (3.9-3.13)

  【Industry Focus】
  Ministry of Industry and Information Technology: In 2019, the import volume of bauxite increased significantly, and the export volume and price of aluminum materials decreased simultaneously
  In 2019, China's aluminum industry continued to adhere to supply side structural reform, strictly controlled the new production capacity of electrolytic aluminum, and strictly implemented the policy of capacity replacement. The industry's production and operation situation was good, and the efficiency of the smelting industry significantly improved. However, prices continued to fluctuate and fall, and the pressure on international trade situation increased. In 2019, the production of alumina and electrolytic aluminum was 72.47 million tons and 35.04 million tons respectively, a year-on-year decrease of 1% and 0.9%, and the production of aluminum materials was 52.52 million tons, a year-on-year increase of 7.5%.
  Export situation of aluminum alloy wheels in China in 2019
  In 2019, the cumulative export value of China's aluminum alloy wheels for the year was 4.036 billion US dollars, a year-on-year decrease of 14.8%, and the cumulative export quantity was 90.38 million, a year-on-year decrease of 9.1%. In December 2019, the export value of China's aluminum alloy wheels was 335 million US dollars, a year-on-year decrease of 7.5%. The export quantity was 7.69 million, a year-on-year decrease of 4.8%.
  The Ministry of Natural Resources has fully initiated the preparation of mineral resource planning
   The Ministry of Natural Resources has issued a notice on the comprehensive development of mineral resource planning (2021-2025), which requires the formation of a national planning draft by the end of June 2020. By the end of December 2020, improve the planning text and organize planning argumentation. By the end of March 2021, the Joint Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Finance, the Ministry of Ecology and Environment, the Ministry of Commerce, and others will submit them to the State Council for approval.
  Report on Confidence Index of Non ferrous Metal Enterprises in the First Quarter of 2020
  According to the China Nonferrous Metals Industry Association, in the first quarter of 2020, due to the impact of the epidemic, the confidence index of non-ferrous metal enterprises fell to 44.8, far below the critical point of 50, a decrease of 4.0 points from the previous period, and to the lowest point in three years. Among them, the spot index was 43.3, a decrease of 6.2 points compared to the previous period, indicating a significant decline in confidence among non-ferrous metal enterprises in the first quarter. It is worth noting that the expected index for the second quarter is 50.6, which is above the critical point of 50, 2.3 points higher than the previous period, and 7.3 points higher than the spot index. It can be seen that despite the general decline in various indices of the non-ferrous industry in the first quarter, most enterprises still maintain confidence in the stabilization of the non-ferrous metal industry in the second quarter.
  Argentina makes final anti-dumping ruling against China's aluminum foil
  On March 9th, Argentina made a final affirmative anti-dumping ruling on aluminum foil originating in China, imposing an anti-dumping duty of 28% on the products involved at the FOB price. The product in question is laminated aluminum foil with a thickness greater than or equal to 0.006 millimeters, less than or equal to 0.2 millimeters, and a width less than or equal to 1300 millimeters, excluding smooth aluminum foil with an aluminum content greater than or equal to 99.2%, a thickness less than or equal to 6 micrometers, and a width less than or equal to 500 millimeters. The resolution shall take effect from the date of its issuance and be valid for five years.

  【Enterprise Style】

  The first batch of finished aluminum ingots from Yunnan Shenhuo have taken off the production line
  On March 10th, the first batch of finished aluminum ingots of Yunnan Shenhuo Aluminum Company successfully took off the production line. The company has four ingot production lines, each equipped with one industry advanced intelligent stacker. Currently, one production line has been put into use, producing approximately 500 tons of aluminum ingots per day, which can meet the demand for a series of 150000 ton ingot production capacity.
  Jinfei Kaida Raises 600 Million RMB to Build an Aluminum Hub Project
  On March 12th, Jinfei Kaida announced that it plans to raise a total of no more than RMB 600 million through non-public issuance of stocks, to be used for the intelligent manufacturing project of 3 million lightweight aluminum alloy car wheels annually and to repay bank loans. The project is implemented by Zhejiang Jinfei Kaida Wheel Hub Co., Ltd. and is located in the New Energy Vehicle Industrial Park of Jinhua Economic Development Zone. The construction period is approximately 2 years. After the completion of the project, the annual production capacity of 3 million lightweight aluminum alloy car wheels will be formed.
  Yunlu Yuxin Wins a National Invention Patent
  Recently, good news came from the China National Intellectual Property Administration that the "shell hammer for aluminum reduction cell and its manufacturing method" independently developed and designed by Yunlv Yuxin Company won the national invention patent and issued a certificate. This patent can effectively reduce the production cost of aluminum electrolysis cells, improve wear resistance, corrosion resistance, and high temperature resistance, and is easy to operate and implement.
  Inner Mongolia Autonomous Region Development and Reform Commission has reviewed and approved the energy-saving report of Shenhua 300000 ton alumina project
  Recently, the Development and Reform Commission of Inner Mongolia Autonomous Region issued a review opinion on the energy-saving report of the 300000 ton/year high alumina fly ash comprehensive utilization industrialization demonstration project in Shenhua Zhungeer Mining Area. It is understood that the project is located in the Dalu Industrial Park of Zhungeer Banner, with an annual processing capacity of 300000 tons of fly ash and an annual production capacity of 125000 tons of alumina as an intermediate product for the production of 65000 tons of electrolytic aluminum. Among them, electrolytic aluminum is processed into 32357.4 tons of regular aluminum ingots, 22520 tons of refined aluminum ingots, and 10000 tons of high-purity aluminum ingots.
  Five national standard samples developed by Southwest Aluminum have been approved and released
  Recently, the State Administration for Market Regulation and the National Standards Commission approved the release of 92 national standard samples. Among them, 5 standard samples were developed by Southwest Aluminum, including "Er7 series aluminum alloy spectral standard samples", "cast aluminum alloy 356Z.7 spectral single point standard samples", "cast aluminum alloy 413Y.1 spectral single point standard samples", "aluminum alloy 1050 (including Mg) spectral single point standard samples", and "aluminum alloy 1235 spectral single point standard samples", The validity period is 15 years.

  【Global Vision】

  Hydra Brazil Electrolytic Aluminum Plant Albras caught fire and lost power, resulting in partial shutdown
  According to Hydro Corporation, on the morning of Friday, March 6th, local time in Brazil, the Albras aluminum plant, which is partially owned by Hydro, experienced a power outage due to a fire on a power transformer in the plant area. One of the four production lines at the Albras aluminum plant has ceased production. At present, the fire has been extinguished, and the accident has not caused any casualties. The other three lines have not been affected and are currently operating normally.
  Application for filing anti-dumping and countervailing investigations on ordinary aluminum alloy plates by American companies
  On March 9, 2020, the General Aluminum Alloy Plate Working Group of the American Aluminum Association and Aleris Rolled Products, Inc., a US company Arconic, Inc., Constellium Rolled Products Ravenswood, LLC, JWALuminum Company, Novelis Corporation, and Texas Aluminum, Inc. have submitted to the United States Department of Commerce and the United States International Trade Commission their reports on Bahrain, Brazil, Croatia, Egypt, Germany, Greece, India, Indonesia, Italy, South Korea, Oman, Romania, Serbia, Slovenia, South Africa, Spain Application for initiation of anti-dumping and countervailing investigations on ordinary aluminum alloy plates in Taiwan, China, China and Türkiye.
  Vedanta Lanjigarh Alumina Refinery plans to increase production to 1.8 million tons per year in fiscal year 20
  Vedanta stated that, benefiting from significant improvements in operational efficiency, the company plans to increase the production of the Lanjigarh alumina refinery from 1.5 million tons per year to 1.8 million tons per year in the 2020 fiscal year. The company stated in a statement that the improvement in operational efficiency is mainly reflected in a 26% decrease in caustic soda consumption, a 19% decrease in conversion costs, and a 9% decrease in bauxite costs. In terms of total energy consumption, Lanjigarh Refinery has now ranked among the top five global alumina refineries.