[China Aluminum Industry Network] To handle the immediate problems, the need to firmly control the new production capacity, any area should not have any reason to go to new production capacity, in terms of strict control of production capacity needs to say.
Since the layers of micro-regulation and control that began in 2003, electrolytic aluminum production capacity has continued to add momentum, facing the industrial status quo, after all, the government regulation is still the mall deal?
CEI: Overcapacity of electrolytic aluminum doubts how you should handle it, and what do you think about the effect of marketization and administrative practices?
Liu Libin: The shopping mall's questions should be given to the mall, but the conditions depend on where the excess aluminum electrolytic aluminum occurs. The primary raw material for the production of electrolytic aluminum is electricity, which was developed by the State Grid and the National Development and Reform Commission. It is not a completely malleable raw material. The quotation of nearly 50% of the raw materials in the upstream is not mall-based, so that the downstream products are thoroughly market-oriented. This is not a reasonable approach in the present.
Today, electrolytic aluminum companies are struggling to manage their business. The reasons are mainly the upstream price, the microeconomic situation, the slowdown in economic growth, and the declining demand for spending. From the comparison between companies, the most important factor is the price of electricity and power supply methods. The power supply method cannot be determined by the company or the mall. It must be decided by the government.
Electrolytic aluminum company's competitiveness is reflected throughout the price of electricity. Looking deeper, it is a question of coal resources. Most of the regional coal prices indirectly reflect the electrolytic aluminum companies in this region. Production of 1 ton of aluminum may consume 4.4 tons of standard coal. In 2012, Henan's standard coal price was 1,150 yuan/ton, and in the same period, Xinjiang was only 150 yuan/ton. Every ton of aluminum produced will be able to set aside a capital cost of 4,400 yuan, and deducting 2,000 yuan per ton of freight will still be profitable.
At that time, Henan's standard coal price has now fallen below 700 yuan/ton, Xinjiang has now risen to 200 yuan/ton, and the distance of 500 yuan/ton has multiplied 4.4 to only 2,200 yuan. The intention of the electrolytic aluminum company to invest in Xinjiang is to seek profit, but in the case where the Xinjiang advantage is no longer evident, the surplus is a disadvantage.
CEI: You think that because of the price of electricity, you cannot rely entirely on the market-oriented method to handle the problem of overcapacity in electrolytic aluminum. So what do you think of the establishment of professional access thresholds?
Liu Libin: The establishment of access thresholds is good for careers. After the entry barrier, standard restrictions are imposed on companies with blind intentions, poor technical specifications, or improperly funded regional conditions, which will help resolve the excess aluminum electrolytic capacity. The dissemination of electrolytic aluminum production capacity should be maintained at present, and Xinjiang should select the appropriate proportion of additions, and the rapid growth may bring more potential problems.
The industrial development in each region should be carried out based on its own advantages, rather than the same as Xinjiang Electrolytic Aluminum, which will break production capacity from zero to 50% of national production capacity within a short time. This kind of rapid expansion has been caused by the fact that the industry has been over-hyped for the past two years. From government documents, to experts, and related professional conferences, Xinjiang is being mentioned. At that time, Xinjiang was launched in contrast to suitable occupations. However, with the passage of time, the environment will change.
CEI: How do you anticipate how your career will develop, and how do you respond to overcapacity?
Liu Libin: This career will eventually be carried out in a reasonable direction. After all, the result is that all electrolytic aluminum companies in China have basically used the same electricity price and the electricity supply method has basically converged. At that time, the competitive advantage was the coal price, not the current electricity supply method. The distance caused. For example, in Guizhou, after the power plant has sent electricity to the power grid, an additional 0.2 yuan per kilowatt-hour electricity is added to the aluminum plant. The 0.2 yuan fee is agreed by local development and reform commissions. Inner Mongolia is about 0.03 yuan. Some companies generate electricity at their own expense. This kind of power supply method will inevitably converge in the future. Otherwise, the mall will eliminate companies that use high electricity prices.
Eastern expects the advantages of the electrolytic aluminum project to prevail in production, management and technology. However, no matter how old or new the company is, it will be limited in terms of management level and technical indicators. There is a company in Henan Province that has been assessed by many academicians as the domestic technology level, but it is still closed in 2013. The key question is the price of electricity. Just like highway tolls, it is assumed that the toll fee in Shandong is 0.4 yuan/km, while in Guizhou it is 5 yuan/km, and the car will be energy-efficient and costly.
Since last year, the state strictly controlled the electrolytic aluminum production capacity, the overcapacity situation has somewhat converged. To deal with immediate problems, the demand for new production capacity must be firmly controlled. There should not be any reason to build new production capacity in any area. The demand for strict control of production capacity is said to be achieved.
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