Electrolytic Aluminum: Excessive Transparency The Market Follows The Focus To Determine The Price
At present, the focus of the market is concerned with the following four points: First, the progress of production capacity of illegal production; Second, the number of transactions and the number of details of the indicators; Third, increase production and production process in the process of substantial changes in supply; Fourth, the market trend trend. These are also Aladdin (ALD) recent focus on several aspects.
Progress of production of illegal production capacity
As of yesterday, Aladdin (ALD) the latest understanding of illegal production capacity, Xinjiang Jiarun 150,000 tons production capacity has been discontinued; Wei Bridge announced the first batch of production capacity of 250,000 tons has been discontinued, and last week came the news, we Is expected to accumulate 350,000 tons; Xinjiang Greek aluminum production of a series of 400,000 tons; Shandong letter on the beginning of the week began to stop the program, the current number of small stops. Integrated down, the country has been cut production capacity has been about 90 million tons.
At present, the enterprise's response strategy, one is to try to delay, in the time node to take no way to reduce production position, and then slow down to wait and see. Second, actively organize the material, to seek local government support, but the policy supervision is too strict, the local government is facing greater pressure, so the performance of some powerless. Third, the old and new capacity to replace the old trough of the enterprise will be discontinued, the new capacity to replace it, but this approach is consistent with the policy provisions are still controversial. Fourth, the most direct is the most important response to the current business is to seek indicators.
Aladdin (ALD) that, if the strict implementation of the policy is expected to increase the maximum round of the current round of more than 300 million tons, but taking into account the enterprise is facing a certain degree of difficulty, the upstream and downstream, the impact of the unit and enterprises in the high profits do not want to cut production Psychological, to the progress of production capacity may not be so fast, but the September check is still the business needs to face the exam, so ahead of the development of a good cut plan, while sideline cut should be the primary business approach.