As the aluminium industry market continued to deteriorate, global second largest alumina maker - Chinalco planned to change parts of his production line to lexible production, involving electrolytic aluminium business with capacity of 380,000 tons.
Since Q4 of 2011, aluminum prices had continued to fall. The problem of aluminum electrolysis industry's over capacity is getting worse. What's worse, the weak global economic recovery led to the massive losses in lectrolytic aluminium industry. According to the data from State Statistics Bureau, up to the end of March, there were 278 aluminium smelting enterprises in China and 97 of them lost.
As the industry leader, Chinalco continued to gain profits in 2010 and 2011. But it loss 8.234 billion yuan last year. In Q1 of this year, Chinalco lost 1 billion yuan. Chinalco started to dispose subordinate aluminum assets. On May 10, stock rights of aluminum process enterprices has been transfered.
Written by Nicolas Yang