Since February, Baise, Guangxi, has been continuously disturbed by the epidemic, which has had a certain impact on the local aluminum industry. Associated Press reporter recently learned that the implementation of traffic control in Baise area, regional control and control, personnel investigation and management of epidemic prevention and control measures, the production of local alumina, electrolytic aluminum production and raw materials in the region and across provinces transport resistance, with the inventory consumption and uncertainty of the epidemic situation, aluminum factory follow-up normal production or affected.
According to the latest official news, as of February 10, there were 33 new locally confirmed cases in Guangxi, all in Baise City. There are 220 local confirmed cases, including 219 cases in Baise City.
Due to the needs of epidemic prevention and control, Guangxi baikuang Aluminum Co., Ltd. still implements sealing and control management, that is, the management measures of “regional closure, staying at home and providing door-to-door services” are implemented; Baise Xinshan aluminum industry demonstration park is designated as a control area, and the management measures of “no people out of the area, no gathering” are implemented; Implement traffic control on all roads entering and leaving the sealed and controlled area.
Overall, this round of epidemic may further reduce the operating capacity of Baise alumina and electrolytic aluminum. Insiders of a cross regional aluminum enterprise said that it is difficult to transport alumina and electrolytic aluminum from Baise across provinces and cities, and the goods will be shipped from Shandong first. Some midstream producers also said, “our alumina supply comes from Baise, but now the arrival is indeed affected due to the epidemic traffic control there. We can’t adjust the goods temporarily, but we have inventory.” It further emphasizes that the reserve of raw materials in the early stage is abundant, which can meet the current production needs. In terms of production, according to insiders of Huayin Aluminum told the associated press of finance, the factory’s alumina is still in continuous production.
It is worth noting that due to the continuous reduction of overseas electrolytic aluminum production and the reduction of production of northern aluminum plants such as Shanxi, Shandong and Henan due to the environmental protection policy of the Winter Olympics, the overall accumulation level of electrolytic aluminum is low, while the demand for aluminum in the infrastructure industry has increased, supporting the further rise of aluminum price. The above sales person in charge said that on February 10, the quotation of alumina was 3145 yuan / ton, and the price of electrolytic aluminum was rising every day.
Does the tightening of upstream production and supply affect the production and supply and product prices of downstream enterprises in the aluminum industry chain? The relevant person in charge of Guangdong Haomei New Materials Co.Ltd(002988) (002988. SZ) said that although the price of aluminum is rising, relevant raw materials are relatively easy to purchase if necessary. The company’s goods are purchased from traders, and it is not known whether the source supply of raw materials is affected by the supply of Baise epidemic. The company has signed an annual purchase agreement with suppliers, with guaranteed purchase quantity and market price. January is the traditional off-season of building materials, and the impact on product supply is unclear.
The relevant person in charge of South China aluminum enterprise Guangdong Hoshion Aluminium Co.Ltd(002824) (002824. SZ) said that the company’s relevant aluminum products adopt the pricing mode of “aluminum ingot price + processing fee”, and the rise of aluminum price has little impact on the company. It stressed that the company continued to pay attention to the supply of aluminum ingots in the market and prepared the goods in advance. At present, the stock of relevant raw materials is sufficient.
Statistics show that Baise is one of China’s top ten non-ferrous metal mining areas, with proven bauxite reserves of 750 million tons and prospective reserves of more than 1 billion tons, accounting for about one quarter of the national reserves. According to SMM statistics, by the end of January, the operating capacity of electrolytic aluminum in Guangxi was about 1.98 million tons, of which 1.73 million tons were involved in the operating capacity of electrolytic aluminum in Baise, accounting for 4.5% of the national operating capacity; Baise’s alumina production capacity is about 9.55 million tons, accounting for about 11% of the national production capacity.
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