The financial crisis has severely affected the non-ferrous metals industry. According to reports from related departments, the prices of copper and aluminum began plummeting in the second half of 2008. From the beginning of July to the end of December, the copper price in the domestic market fell from 64,370 yuan per ton to 2,8000 yuan per ton, and the aluminum price dropped from 19,415 yuan per ton to 10,000 yuan. A little more, but at this time the cost of electrolytic aluminum still reached 12,000 to 14,000 yuan / ton, resulting in 40% of the industry's production capacity to stop production.
Shandong's alumina production ranks first in the country, and electrolytic aluminum production ranks second. For Shandong, the aluminum industry can be called half of the non-ferrous metal industry.
The cost of logistics construction in coastal aluminum plants has been greatly reduced The plan for the revitalization of non-ferrous metals in Shandong Province proposes that in the next few years, a number of major projects will be implemented and these projects will focus on coastal areas.
After completing the construction of aluminum strip project with investment of RMB 1 billion, Shandong Lufeng Aluminum Foil Co., Ltd. decided to invest a further RMB 3.5 billion to build a new downstream aluminum product project in Qingdao. Li Kun, the company's deputy general manager, revealed to reporters that aluminum products are relatively large and of high quality compared to other products. In the construction of aluminum products projects in Qingdao, China Aluminum Qingdao Light Metal Co., Ltd., which will invest in Qingdao in the future, can be directly purchased. As for the major aluminum-related products, the logistics cost per ton of aluminum will save about 150 yuan, and the competitive advantage of the product will be higher than that of the mainland enterprises.
“In the past, our aluminum strips were imported from Henan and Shanxi. The transportation cost per ton reached more than 200 yuan. Last year we began to purchase from Zouping Qixing, and the transportation cost was only 50 yuan per ton. This can make our products more profitable. More than 10%.†Li Kun thinks the company’s decision is very wise.
An executive from China Aluminum Shandong Branch introduced that, at present, the biggest problem in China's aluminum industry is the issue of raw materials. All the bauxite required in Shandong is imported, while the bauxite resources in provinces such as Henan and Shanxi provinces in the big aluminum provinces will also be warned. The future of aluminum products will depend on imports for most of the bauxite, and whoever depends on the coast will equal Occupy the commanding heights of raw materials. Taking the current example of Shanlv, he uses a bauxite mine in a coastal city with a large port to save at least 120 yuan in freight per ton compared to Zibo. If the aluminum industry is laid out based on the advantages of Shandong's coastal areas, Shandong's aluminum industry will have an absolute advantage in the future industrial restructuring.
At present, Shandong's upstream aluminum products are mainly distributed in companies such as Weiqiao, Shanlu, Nanshan, and Xinfa. In addition to Nanshan, these enterprises have high logistics costs in the inland areas and it is imperative to implement the strategic shift.
To lengthen the industrial chain to form a recycling circle. Talking about the structure of aluminum industry in Shandong Province, the executives of Chinalco Shandong Branch summarized the use of eight words: top-heavy, rough and heavy.
The aluminum industry in Shandong Province has problems such as imperfect industrial chain, few deep-processing projects, low added value, and high production costs, which makes the aluminum industry in Shandong province in a situation where investment is large and the benefits are low. The data shows that the production capacity of alumina and electrolytic aluminum in Shandong Province reached 13 million tons and 4 million tons respectively, and the output of alumina and electrolytic aluminum were 6.56 million tons and 1.6 million tons, respectively, but the output of aluminum materials was only 1.86 million tons. Aluminum products are basically not ranked in the country. Compared with Shandong, the aluminum industry assets and scale of Jiangsu and Zhejiang are relatively small, but because most of them are downstream products, the profits and taxes obtained each year are not lower than Shandong, which is a large aluminum industry province.
Li Kun said that the incomplete industrial chain not only led to a substantial increase in logistics costs, but also led to delays in the transmission of market information at all levels and the disconnection of upstream and downstream products. If the upstream and downstream industries are relatively concentrated in one area, the coordination between the industries will be simple and efficient, and the industrial chain will be perfect, and the accumulation of technical talents will also be formed. Scientific and technological innovation can form a joint force.
Shandong Lufeng aluminum foil after the new aluminum strip project, the strip heat production line can be supplied to the aluminum foil production line, at the same time, the production line of the by-products, scrap has a recycling path, the company's operating costs can be greatly reduced.
The reporter learned that many companies have seen opportunities for the vacancy in the aluminum industry chain in Shandong Province, and capital is flowing into this area. Executives of Chinalco Shandong Branch believe that the current price of non-ferrous metals such as aluminum fell by 50% -60% as a whole, and companies have cut production. This is a good opportunity for structural adjustment and mergers and acquisitions. Aluminum companies in Shandong Province should seize this opportunity to extend the industrial chain of aluminum products. Once the market demand picks up, the advantages will become apparent.
Control resources to take the initiative recently, and Rio Tinto's iron ore import negotiations once again because the domestic steel companies do not have a group and make China in a passive position in the negotiations. Imports of bauxite also have this problem.
In recent years, in order to compete for resources, each aluminum smelting enterprise has raised the price of imported bauxite every year. According to statistics, China's imported bauxite was originally only around US$12/tonne, and it had soared to more than US$70/tonne by October last year.
The executives of Chinalco Shandong Branch believe that the aluminum industry in Shandong should be strengthened and must solve the problem of raw material restriction. First of all, solving the vicious competition among enterprises is an important part of breaking through this bottleneck. It is necessary to promote the integration of resources among enterprises through government coordination and jointly purchase resources. Secondly, it is also a fundamental measure to build its own resource base in resource-rich countries through sole proprietorships, participation in shares, etc., to both mine and produce products. With a resource base, companies will be able to cope with economic fluctuations. With high resource prices, our base makes money, resource prices drop, and our products start earning money, forming a risk hedging mechanism.
It is reported that Japan implemented such a resource strategy on iron ore as early as the last century, so that its companies can be in distress. At present, the Middle East is building aluminum plants on a large scale and the market competition will be fierce in the future. At that time, the competitiveness of the aluminum industry mainly came from resource advantages. Therefore, building resource bases abroad as soon as possible is related to the survival of the aluminum industry in Shandong Province. Important strategy.
Shandong's alumina production ranks first in the country, and electrolytic aluminum production ranks second. For Shandong, the aluminum industry can be called half of the non-ferrous metal industry.
The cost of logistics construction in coastal aluminum plants has been greatly reduced The plan for the revitalization of non-ferrous metals in Shandong Province proposes that in the next few years, a number of major projects will be implemented and these projects will focus on coastal areas.
After completing the construction of aluminum strip project with investment of RMB 1 billion, Shandong Lufeng Aluminum Foil Co., Ltd. decided to invest a further RMB 3.5 billion to build a new downstream aluminum product project in Qingdao. Li Kun, the company's deputy general manager, revealed to reporters that aluminum products are relatively large and of high quality compared to other products. In the construction of aluminum products projects in Qingdao, China Aluminum Qingdao Light Metal Co., Ltd., which will invest in Qingdao in the future, can be directly purchased. As for the major aluminum-related products, the logistics cost per ton of aluminum will save about 150 yuan, and the competitive advantage of the product will be higher than that of the mainland enterprises.
“In the past, our aluminum strips were imported from Henan and Shanxi. The transportation cost per ton reached more than 200 yuan. Last year we began to purchase from Zouping Qixing, and the transportation cost was only 50 yuan per ton. This can make our products more profitable. More than 10%.†Li Kun thinks the company’s decision is very wise.
An executive from China Aluminum Shandong Branch introduced that, at present, the biggest problem in China's aluminum industry is the issue of raw materials. All the bauxite required in Shandong is imported, while the bauxite resources in provinces such as Henan and Shanxi provinces in the big aluminum provinces will also be warned. The future of aluminum products will depend on imports for most of the bauxite, and whoever depends on the coast will equal Occupy the commanding heights of raw materials. Taking the current example of Shanlv, he uses a bauxite mine in a coastal city with a large port to save at least 120 yuan in freight per ton compared to Zibo. If the aluminum industry is laid out based on the advantages of Shandong's coastal areas, Shandong's aluminum industry will have an absolute advantage in the future industrial restructuring.
At present, Shandong's upstream aluminum products are mainly distributed in companies such as Weiqiao, Shanlu, Nanshan, and Xinfa. In addition to Nanshan, these enterprises have high logistics costs in the inland areas and it is imperative to implement the strategic shift.
To lengthen the industrial chain to form a recycling circle. Talking about the structure of aluminum industry in Shandong Province, the executives of Chinalco Shandong Branch summarized the use of eight words: top-heavy, rough and heavy.
The aluminum industry in Shandong Province has problems such as imperfect industrial chain, few deep-processing projects, low added value, and high production costs, which makes the aluminum industry in Shandong province in a situation where investment is large and the benefits are low. The data shows that the production capacity of alumina and electrolytic aluminum in Shandong Province reached 13 million tons and 4 million tons respectively, and the output of alumina and electrolytic aluminum were 6.56 million tons and 1.6 million tons, respectively, but the output of aluminum materials was only 1.86 million tons. Aluminum products are basically not ranked in the country. Compared with Shandong, the aluminum industry assets and scale of Jiangsu and Zhejiang are relatively small, but because most of them are downstream products, the profits and taxes obtained each year are not lower than Shandong, which is a large aluminum industry province.
Li Kun said that the incomplete industrial chain not only led to a substantial increase in logistics costs, but also led to delays in the transmission of market information at all levels and the disconnection of upstream and downstream products. If the upstream and downstream industries are relatively concentrated in one area, the coordination between the industries will be simple and efficient, and the industrial chain will be perfect, and the accumulation of technical talents will also be formed. Scientific and technological innovation can form a joint force.
Shandong Lufeng aluminum foil after the new aluminum strip project, the strip heat production line can be supplied to the aluminum foil production line, at the same time, the production line of the by-products, scrap has a recycling path, the company's operating costs can be greatly reduced.
The reporter learned that many companies have seen opportunities for the vacancy in the aluminum industry chain in Shandong Province, and capital is flowing into this area. Executives of Chinalco Shandong Branch believe that the current price of non-ferrous metals such as aluminum fell by 50% -60% as a whole, and companies have cut production. This is a good opportunity for structural adjustment and mergers and acquisitions. Aluminum companies in Shandong Province should seize this opportunity to extend the industrial chain of aluminum products. Once the market demand picks up, the advantages will become apparent.
Control resources to take the initiative recently, and Rio Tinto's iron ore import negotiations once again because the domestic steel companies do not have a group and make China in a passive position in the negotiations. Imports of bauxite also have this problem.
In recent years, in order to compete for resources, each aluminum smelting enterprise has raised the price of imported bauxite every year. According to statistics, China's imported bauxite was originally only around US$12/tonne, and it had soared to more than US$70/tonne by October last year.
The executives of Chinalco Shandong Branch believe that the aluminum industry in Shandong should be strengthened and must solve the problem of raw material restriction. First of all, solving the vicious competition among enterprises is an important part of breaking through this bottleneck. It is necessary to promote the integration of resources among enterprises through government coordination and jointly purchase resources. Secondly, it is also a fundamental measure to build its own resource base in resource-rich countries through sole proprietorships, participation in shares, etc., to both mine and produce products. With a resource base, companies will be able to cope with economic fluctuations. With high resource prices, our base makes money, resource prices drop, and our products start earning money, forming a risk hedging mechanism.
It is reported that Japan implemented such a resource strategy on iron ore as early as the last century, so that its companies can be in distress. At present, the Middle East is building aluminum plants on a large scale and the market competition will be fierce in the future. At that time, the competitiveness of the aluminum industry mainly came from resource advantages. Therefore, building resource bases abroad as soon as possible is related to the survival of the aluminum industry in Shandong Province. Important strategy.