Development and Reform Commission Says to Prevent the Investment in Electrolytic Aluminum from Rebounding and Control the Blind Growth of Production Capacity

Beijing April 25 news: China's National Development and Reform Commission said on Tuesday that this year's electrolytic aluminum production capacity greatly exceeds domestic demand will continue. It is necessary to further strengthen and improve macro-control, prevent the rebound of investment in electrolytic aluminum, control the blind increase in production capacity, accelerate the structural adjustment of the aluminum industry, increase the added value of products, and cope with excess production capacity of electrolytic aluminum. According to a press release issued by the National Development and Reform Commission on its website, the problems in China's aluminum industry mainly include severe overcapacity of electrolytic aluminum and low concentration of the industry; serious losses in electrolytic aluminum enterprises; insufficient guarantee of bauxite resources; and large export of electrolytic aluminum; The accounts receivable and finished product inventory remained high; the blind construction had rebound pressure and the aluminum processing technology and economic indicators were behind. The National Development and Reform Commission said that it will promote industrial restructuring and strictly control the expansion of the total; support the joint reorganization of alumina, electrolytic aluminum, and aluminum processing companies; establish an internationally competitive enterprise group; and strictly enforce the 35% and above capital of electrolytic aluminum construction projects. The proportion of regulations; eliminate backward electrolytic aluminum production capacity. At the same time, to maintain zero tariffs on imported bauxite, impose 5.5% import duties on alumina, continue to implement the policy of canceling tax rebates and impose a 5% tariff on the export of electrolytic aluminum products; focus on the development of high-precision aluminum plates, belts, foils, and high-speed thin strips. The production technology and equipment for high value-added products such as large-size aluminum alloy sections for rail transit. According to data from the National Development and Reform Commission, at the end of 2005, China’s electrolytic aluminum production capacity was 10.70 million tons, electrolytic aluminum production was 7.81 million tons, apparent consumption was only 7.12 million tons, and the average utilization rate of production capacity was only 75-78%; the 80 aluminum smelters that suffered losses in 2005 Almost all enterprises are electrolytic aluminum enterprises, with a loss of 1.31 billion yuan, a year-on-year increase of 110%.