Since February, Guangxi Baise has been infested with the epidemic, causing a certain impact on the local aluminum industry. Financial news agency reporter recently research was informed that the Baise area implemented traffic control, regional seal control control, personnel screening and management of epidemic prevention and control measures, the local alumina, electrolytic aluminum production and raw materials in the region and cross-provincial transport resistance, with inventory consumption and uncertainty of the epidemic, aluminum plant subsequent normal production or affected.
The latest official news shows that as of February 10, 33 new local confirmed cases were added across Guangxi, all in Baise City. There are 220 confirmed local cases, including 219 cases in Baise City.
Because of the epidemic prevention and control needs, the current Guangxi Baimin Aluminum Co., Ltd. is still implementing closed management, that is, the implementation of “regional closure, without leaving home, service door-to-door” management measures; Baise Xinshan Aluminum Industry Demonstration Park is designated as a control area, the implementation of “people do not go out of the area, forbidden to gather” management measures; in and out of the closed control area, control area of all roads to implement traffic control.
Overall, the current round of the epidemic may further reduce the operating capacity of Baise alumina and electrolytic aluminum. A cross-regional operation aluminum enterprise insiders said, alumina and electrolytic aluminum from Baise cross-provincial transportation has certain difficulties, goods will be given priority to consider shipping from Shandong. Also a midstream producer said, “our alumina sources from Baise, but now there because of the epidemic traffic control, the arrival of goods really affected, temporary transfer of goods can not be transferred, but we have inventory.” It further stressed that the early raw material reserves are abundant and can meet the current production needs. Production, according to Huayin Aluminum insiders told Caixin News Agency, the plant alumina is still in continuous production.
It is worth noting that, by overseas electrolytic aluminum continued to reduce production, Shanxi, Shandong, Henan and other northern aluminum plants due to the winter Olympic environmental protection policy to reduce production and other factors, coupled with the overall electrolytic aluminum accumulation level is low, while the infrastructure industry demand for aluminum has risen, supporting aluminum prices further upward. The aforementioned sales manager said that on February 10 alumina offer 3145 yuan / ton, the price of electrolytic aluminum is rising every day, the price floating.
Upstream production and supply tend to tighten, the aluminum industry chain downstream enterprises production and supply and product prices caused by the impact? Haomei new material (002988.SZ) related person in charge said, although the price of aluminum is rising, but the relevant raw materials are still relatively easy to purchase if needed. The company purchases goods from traders, whether the source supply of raw materials is affected by the Baise epidemic supply is not known. January is the traditional low season for construction materials, so the impact on product supply is not obvious.
South China aluminum enterprises and Sheng shares (002824.SZ), said the person in charge of the company’s aluminum products to take the “aluminum ingot prices + processing fees” pricing model, aluminum prices rise on the company relatively small impact. It stressed that the company continues to pay attention to the supply of aluminum ingots on the market, prepare the goods in advance, and currently have sufficient stocks of relevant raw materials.
Information shows that Baise is one of the top ten non-ferrous metal mining areas in China, with proven bauxite reserves of 750 million tons and prospective reserves of more than 1 billion tons, accounting for about a quarter of the country’s reserves. According to SMM statistics, as of the end of January, Guangxi electrolytic aluminum operating capacity of about 1.98 million tons, including 1.73 million tons of operating capacity involving electrolytic aluminum within Baise City, accounting for 4.5% of the national operating capacity; Baise City alumina completed capacity of about 9.55 million tons, accounting for about 11% of the national capacity.
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Post time: Feb-14-2022