China’s Aluminum Industry Estimated to Have $1.8B Loss Last Year

The loss is 11.35b yuan, with 35% of companies losing money, or 89 of 281 aluminum enterprises, Qin Junman, vice president of China Nonferrous Metal Industry’s Foreign Engineering & Construction Co., says in presentation for the Metal Bulletin aluminum conference in Geneva today. * Industry still expanding, with 2,700 kt/a smelting capacity estimated to be under construction, mainly in Xinjiang, Qinghai, Gansu and Inner Mongolia * Domestic bauxite production didn’t meet demand of alumina refineries in China * Domestic bauxite grades “poorer” * Avg. power costs for aluminum smelters before taxes is highest in China, followed by Brazil, U.S., Australia, India, Norway, Russia, Canada and finally UAE * “Government support required: government to buy and store ingot to cut inventory”

To contact the reporter on this story: Agnieszka Troszkiewicz in London at atroszkiewic@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.