Nine Ministries And Commissions Stopped The Proposed &Nbsp Project, And Avoided Repeating The Same Mistakes.

Nine ministries and commissions such as the Ministry of industry and information technology jointly issued an urgent notice, calling for the immediate stop of the proposed 7 million 740 thousand ton electrolytic aluminum project. Investment It amounts to 77 billion yuan. 21 days after the announcement, A equity market Aluminum Inc's popularity on the market has led to a rise of 6.2% and 4.9% respectively in the leading public sector and Xinjiang aluminum shares.

according to Ministry of industry and information technology According to the data, by the end of 2010, China's electrolytic aluminum production capacity was 23 million tons, while the actual output was 15 million 600 thousand tons, and the utilization rate of equipment was only 70%. If all the proposed projects are put into operation, the capacity of the national electrolytic aluminum will exceed 30 million tons at the end of 12th Five-Year, and the contradiction between overcapacity will further intensify.

Before electrolysis aluminum, the metal industry trapped in serious excess capacity is the most typical steel industry. In May 2009, the Ministry of industry and Commerce issued an urgent notice to curb the excessive growth of steel production. Since then, the regulation and control of iron and steel industry has been upgraded step by step, and measures such as reducing bank credit and implementing differential electricity price have been used.

Like iron and steel, the problem of excess capacity of electrolytic aluminum was exposed in the early 2009. In the previous plan for the adjustment and revitalization of nonferrous metals, it was proposed that in the next three years, the new and expanded aluminum electrolysis projects would not be approved in principle. However, the implementation of this plan is not ideal. In the next year, domestic electrolytic aluminum production capacity still increased by more than 25%.

Continuous expansion has made electrolytic aluminum the weakest industry in the nonferrous metal industry. In November 2010, the domestic aluminum smelting industry had a profit margin of only 3.59%, less than 1 percentage points higher than that of the iron and steel industry. To avoid the failure of electrolytic aluminum to follow the iron and steel industry, the notice of the nine ministries and commissions is of the essence.

"From past experience, the policy of containing capacity expansion of electrolytic aluminum will often be given a certain discount." Ye Tao, chief analyst of Huatai joint nonferrous metals industry, said. Especially in areas where regional revitalization plans are implemented, enterprises may use other names to declare electrolytic aluminum projects.