Why does the aluminium price in China face descending pressure

Powder-Coating-Workshop

Overcapacity is the direct purpose of the falling of aluminium home windows prices, which may additionally lower the curtain wall cost. According to the facts of China Nonferrous Metals Association, the cumulative output of China's electrolytic aluminum in the first half of this year reached 11.502 million tons, an extension of 8.9% year-on-year, setting a new record. According to the statistics on colored networks, the working capacity of Xinjiang Electrolytic Aluminum will expand to 5 million tons by using the stop of this year. From about 500,000 lots in 2011, Xinjiang's electrolytic aluminum production potential has increased tenfold in the previous four years. Behind the madness of production, the capability is the huge growth pressure off local governments, which has led to the unrelenting funding in the aluminum industry, resulting in waste and destruction of funds, resources, and the environment.

The Al Price influences the pricing of aluminium suppliers a lot, which may similarly effect in fluctuations in prices of aluminum house door, cutting-edge aluminum windows, and aluminium profile.

Another quandary facing the aluminum industry these days is the growing potential of macro-control. Despite the non-stop manage measures, the production ability is nonetheless skyrocketing. According to the non-ferrous network data, China's electrolytic manufacturing potential will increase by using every other 3 million heaps in 2014.

On the other hand, high electrical energy bills have become the ultimate straw to crush the profitability of power grid purchases. Electricity payments presently account for about 45% of the total fee of electrolytic aluminum. Industry professionals bluntly say that businesses that do not have their personal electricity, even benefits in management level, technological know-how functions and resources, labor costs, etc. can not make up for the massive hole in electricity costs.

Insiders of Chinalco stated that the employer currently has an excessive percentage of online purchasing for aluminium extrusion, aluminium tube, aluminium sheet and other aluminium sections and businesses that use self-supplied strength capacity is also going through greater community fee. The distinction in electrical energy charges is very apparent by means of comparison.

Although Chinalco has anticipated that it will nevertheless lose money in the 0.33 quarter in the mid-year report, it is still anticipated that it can steadily develop through the allocation of mineral resources, coal-electricity and aluminum integration, slimming adjustment and optimization of assets and the development of blended ownership to decrease loss and subsequently reverse the loss.

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