Download Sina Finance APP to view more information and views of big V
Original title: China Aluminum’s net profit in the first half of the year was nearly 3.1 billion yuan, an increase of over 85 times
Since the beginning of this year, in the context of power cuts, the price of electrolytic aluminum has continued to rise, and the performance of related companies has increased significantly. On the evening of August 24, aluminum industry leader Chalco (601600) released a semi-annual report. In the first half of the year, its revenue was 120.736 billion yuan, an increase of 43.55% year-on-year; net profit was 3.075 billion yuan, an increase of 8511% year-on-year; at the same time, the company’s operations The cash flow was 9.522 billion yuan, the best level in the same period in history.
Net profit increased by 85 times year-on-year
In the first half of this year, alumina prices showed an “N”-shaped trend as a whole. Driven by the rising price of electrolytic aluminum, the price of alumina ushered in an upward trend. The alumina segment and primary aluminum segment of Aluminum Corporation of China contributed to its main income, and its net profit increased by 85 times year-on-year.
Specifically, in the first half of the year, the output of major products such as bauxite, alumina, electrolytic aluminum, fine alumina, carbon and other major products of Aluminum Corporation of China increased by 34.9%, 14.3%, 5.5%, 3.2%, and 18.7% respectively. The company’s alumina segment revenue was 24.162 billion yuan, an increase of 3.087 billion yuan from the same period last year, and its pre-tax profit was 1.376 billion yuan, an increase of 940 million yuan from 436 million yuan in the same period last year; the primary aluminum segment revenue was 32.564 billion yuan, an increase from the same period last year. 9.675 billion yuan, a pre-tax profit of 5.792 billion yuan, an increase of 5.523 billion yuan over the same period last year.
In addition, Aluminum Corporation of China issued a semi-annual report and also disclosed an acquisition announcement. Aluminum Corporation of China Guangxi Branch, subsidiary Chinalco Mining and subsidiary Zunyi Aluminum Corporation respectively acquired China Rare Rare Earth Co., Ltd. Guangxi Gallium by way of agreement. The total transaction consideration for the gallium metal assets of the Industrial Branch, Henan Gallium Branch and Zunyi Gallium Branch is approximately RMB 392 million. The company stated that the transaction is conducive to achieving synergy in the aluminum and gallium industries, improving production efficiency and efficiency, and helping the company to plan and build a high-purity material business unit in the future.
In terms of stock price, in the first half of this year, China Aluminum’s stock price rose 65.56%. As of the close of trading on August 24, the latest stock price was 6.01 yuan per share.
Many factors promote price increases
Why is the current aluminum price rising? From an industry perspective, Chalco analyzed that in terms of alumina, due to the impact of the epidemic at the beginning of the year, under the influence of multiple factors such as transportation restrictions, tight winter capacity, and stocking before the Spring Festival, the alumina market became more active, and the transaction price rose to 2 , 410 yuan/ton. With the decline in demand during the Spring Festival holiday and the increasing willingness of some alumina companies to reduce prices and destock, the average domestic alumina price has maintained a weak downward trend.
In March-April, domestic alumina prices rose slightly under the background that electrolytic aluminum prices remained high. In June, due to the consolidation of non-coal underground mines in Shanxi Province, the tightening of bauxite mines is expected to increase.Thermal coalDriven by the rise in prices of major raw materials such as caustic soda, the cash cost of alumina has increased, and the focus of alumina prices has shown an upward trend. At the end of June, the transaction price of alumina has risen to 2,480-2,500 yuan/ton.
On the whole, in the first half of 2021, the domestic alumina spot price showed an upward trend. The average domestic alumina spot price was 2,399 yuan/ton, a year-on-year increase of 2.9%.
According to statistics, in the first half of 2021, global alumina production was about 69.72 million tons, and consumption was about 65.31 million tons, an increase of 7.2% and 2.8% year-on-year respectively; China’s alumina production was about 37.73 million tons , Consumption is about 37.44 million tons, an increase of 10.7% and 2.8% respectively year-on-year.
As for the primary aluminum market, since the beginning of this year, the global economy has improved, suppressed consumer demand has been released, the manufacturing industry has continued to expand, and the demand for basic metals has rebounded rapidly. Due to the impact of the epidemic, the production and investment of global bulk commodities, including base metals, have slowed down, causing the growth of supply to fall short of the growth of demand. There is a gap in supply and the prices of bulk commodities have risen sharply. The prices of basic metal products hit a record high for many years, and some even hit a record high.
The contradiction of oversupply of aluminum is prominent
However, it needs to be pointed out that the contradiction of oversupply of aluminum has become more and more prominent, and domestic aluminum prices have fallen sharply in January. In February, under the background of the country’s firm promotion of carbon peaking and carbon neutrality, aluminum, as the non-ferrous metal with the largest carbon emission, has attracted market attention. In addition, the implementation of dual control of energy consumption in the Inner Mongolia area and the implementation of power shortages in Yunnan and the adoption of emergency peak-shifting power consumption by power users have resulted in the largest reduction in electrolytic aluminum production by 1.2 million tons/year. Guangxi and Guizhou have also controlled energy consumption. This led to the delay in the construction of new projects and some production cuts. At the same time, the US$1.9 trillion stimulus plan launched by the United States brought a lot of funds into the aluminum market, which has continued to tighten supply. The domestic aluminum price rose to 20,445 in early May. Yuan/ton, a record high in the past 13 years.
As the negative impact brought about by the continuous high price of raw materials becomes more and more prominent, the five departments of the Chinese government jointly negotiatedIron oreUnder the price stabilization policies of key production enterprises in industries such as stone, steel, copper, and aluminum and the State Reserve’s use of dumping reserves, domestic electrolytic aluminum prices began to gradually decline in late May.
In the first half of 2021, the average prices of SHFE current-month aluminum and March aluminum were 17,378 yuan/ton and 17,330 yuan/ton, respectively, up 24.8% and 34.0% year-on-year. According to statistics, in the first half of 2021, global primary aluminum production was approximately 33.95 million tons, and primary aluminum consumption was approximately 34.03 million tons, up 5.7% and 14.8% year-on-year; China’s primary aluminum production was approximately 1,958 10,000 tons, consumption is about 19.91 million tons, an increase of 7.9% and 12.7% respectively year-on-year.
Tianfeng Futures Research Institute pointed out that the current social inventory is close to the level of the same period last year. On August 23, the social inventory of electrolytic aluminum accumulated a small amount of 20,000 tons to 743,000 tons. The domestic social inventory was close to the level of the same period last year and was at a relatively low level. The current national epidemic prevention and control measures are strict, and the Xinjiang Railway has adjusted its transportation policy, resulting in uncertain delivery time. There is a backlog of aluminum ingots and aluminum rods on some platforms, and the arrival of goods in various places is expected to decline. The weekly outbound volume of aluminum ingots is acceptable, and the short-term suspension of de-stocking is expected to continue.
In this regard, Chalco also made market risk warnings, as the price trends of bulk commodities such as alumina and electrolytic aluminum are affected by factors such as domestic and foreign macroeconomic situations, the national “14th Five-Year Plan” energy consumption dual control policy, and the expansion of competitors’ production capacity. Impact, there may be certain fluctuations, which in turn will have a certain impact on the company’s product sales.
Massive information, accurate interpretation, all in Sina Finance APP
Editor in charge: Zhao Siyuan