Another avalanche.

In just two months, domestic alumina prices have fallen by a fifth, currently about 2,400 yuan / ton.

This is another big drop since the financial crisis. The previous time, the price of alumina was “waist” at the high level of 6000-7000 yuan/ton.

Under the avalanche of prices, central enterprises and private enterprises have performed very differently.

On July 22, news came from Nanchuan that Chinalco Chongqing Branch plans to officially start production on August 18. If you take it seriously, it is more than a year away from the original plan.

But its fate is still uncertain.

"Now all aspects have been prepared, and it is hard to keep the cost." Mr. Chang, the director of the Propaganda Department of Chinalco Chongqing Branch said. But he also stressed that "if the price falls again, it is difficult to say."

Contrary to this, a week ago, Bosai Mining (the only alumina private enterprise in Chongqing) was in Nanchuan, and the third phase of the 300,000 tons/year aluminum hydroxide technical transformation project was completed and put into production as scheduled.

Dingtai Tuoyuan's seller farce
On June 8, a pre-listed project appeared in Chongqing United Property Rights Exchange: Chongqing Dingtai Tuoyuan Alumina Co., Ltd. This made the Chongqing aluminum industry feel the chill in the hot summer.

Dingtai Tuoyuan is located at Baima Exit of Xiaoxiang Expressway, Baima Industrial Park, Wulong County, Chongqing. It is mainly engaged in the production and sales of bauxite and alumina, with an annual output of 150,000 tons of alumina. It is also one of the projects of the Chongqing Municipal Government on the layout of alumina "one big two small (one big: Chinalco; two small: Dingtai Tuoyuan and Bosai).

Dingtai Tuoyuan was originally a private enterprise, which was jointly funded by Chongqing Dingtai, Chongqing Tuoyuan and Chongqing Construction Investment Company. Since Dingtai is a three-product enterprise of Chongqing Electric Power Company, Dingtai Tuoyuan was included in the diversified enterprise of the Chongqing Electric Power Group.

Last year, the reform of the national power system required more separation. Dingtai Tuoyuan's "Dang Tang Meat" was seized by China Power Investment and was placed under the custody of its subsidiary, Jiulong Power (600292).

Workers still remember that in the early days of production in 2006, the alumina price of more than 6,000 yuan / ton made the company very prosperous.

Unfortunately, the good days did not last long. In the process of displacement, the external environment of Dingtai Extension has been deteriorating - first the financial crisis, then the fall of aluminum prices.

“The factory now relies on Guizhou's ore as raw material. Now the price of alumina has dropped to 2,400 yuan/ton, but our direct cost (excluding tax) is 2,300 yuan/ton. How to produce it?” Dingtai Tuoyuan said .

In September last year, the old alumina plant was shut down. 150 workers have been dismissed, 250 have retained their labor relations, and only 100 are still at work. Insiders of the company said: "The production is mainly due to technical changes."

In desperation, CPI had to sell it. The announcement said that 160 million yuan can buy all the shares of Dingtai Extension.

But the dramatic thing is that the announcement was less than a month and the announcement was withdrawn. A person from the Chongqing Stock Exchange told the reporter that there was no news that the transferor requested formal listing.

"We don't sell it, and no one buys it." On July 21, Dingtai Extension Source Marketing Department said.

Dingtai Tuoyuan really nobody cares?

In fact, as early as the beginning of February, Boss had revealed the intention of the acquisition, there are rumors that the two sides have even talked about the price. But a week ago, Yuan Zhilun, the chairman of Bosai, said to the reporter, "We are doing our own thing now, and Dingtai Extension is not considering it for the time being."

Chinalco was also one of the potential buyers.

As early as 2006, when Chinalco Chongqing Branch laid the foundation stone in Nanchuan, it was “惦记” over Dingtai Extension. However, when the reporter visited the company, he learned that the Chinalco executives did not intend to acquire.

"Although no one bought it, our technical transformation project is still scheduled to start production in December this year, and began to plan the annual production capacity of alumina from 150,000 tons to 400,000 tons." Dingtai Tuoyuan said.

However, as far as the reporter is aware, the 400,000 tons of alumina expansion project has not yet been approved.

Chinalco delayed production
Why did the former toon fall into a situation where no one wants?

In fact, the days of potential acquirers are equally sad.

The total investment of Chinalco's alumina project is 5 billion yuan, which is the largest one-time investment project since Chongqing's direct administration. The project was laid in April 2006. It consists of an alumina plant with an annual output of 800,000 tons of primary sand-alumina, a plant of 1.55 million tons of concentrate, a mine of 1.65 million tons and a thermal power plant.

According to the Chongqing Municipal Government and Chinalco's vision, relying on the rich bauxite resources of Chongqing Nanchuan, by the end of 2008, 800,000 tons of alumina project will be put into trial production; before 2012, Chinalco Chongqing Branch will have a capacity of 1.6 million tons. Strive to start the construction of 400,000 tons of electrolytic aluminum project, and then form a complete aluminum industrial chain of 1 million tons of aluminum processing, making Chongqing the capital of aluminum processing in China.

However, the financial crisis hit Chinalco, and the project was forced to suspend after the project started, and the date of production was delayed.

On July 13, the Chinalco Chongqing branch in Shuijiang Town, Nanchuan was calm. The reporter went to the factory to see that the factory buildings, production lines, and staff quarters have been built.

Mr. Chang, the director of the company's propaganda department, said with a helpless face, "I don't dare to put into production now, and I lose money when I vote."

It is often from Shanxi, and like Other backbones, it is drawn from various branches of Chinalco. In October last year, Chinalco Chongqing Branch has grown to more than 1,000 people, but due to the delay in production, hundreds of technical school students have temporarily "released."

When talking about the reasons why the factory has repeatedly delayed production, the Chang Minister said, “The grade of bauxite in Nanchuan is too low, the cost of mineral processing and desulfurization is high, and it must be matched with the good mine outside, and the current (alumina) price and the original The costing gap is too big."

Boss cost account
The sluggish alumina market has caused the performance of Chinalco and Dingtai Extension to be sluggish. But in stark contrast, Bossa's new capacity has been put into operation as scheduled.

On July 13, the technical transformation project of 300,000 tons of aluminum hydroxide in Bosai Pioneer Alumina Plant was completed and put into operation in Nanchuan. Yuan Zhilun said: "The commissioning of the project has enabled the plant to produce 600,000 tons of alumina. After the sintering process is put into production in the first quarter of next year, the production capacity will continue to increase to 800,000 tons."

The technical upgrading project began in 2007 with a total investment of nearly 1 billion yuan, which lasted 34 months.

In accordance with Boss's plan, we will strive to achieve sales revenue of over 10 billion yuan and profits of over 1 billion yuan next year. We will enter the top 500 Chinese enterprises and the top 50 private enterprises in China.

Despite the sluggish alumina market, the relevant person in charge of Bosai said that “our target remains unchanged”. .

The enthusiasm of this person in charge is that Boss can better control costs.

At present, 85% of the ore of the Bosai Pioneer Alumina Plant comes from abroad. The person in charge said that although the tax-included cost of importing from abroad is not less than 2,700 yuan / ton, the import of iron ore is large, thus diluting the freight.

At the same time, no less than the plan. “In addition to the expansion of the Pioneer Alumina Plant, our breakthrough point is abroad. The products of the Pioneer Alumina Plant are all shipped to the Bosai Aba Aluminum Plant for the production of electrolytic aluminum.” In this way, although alumina The cost is higher than the market price, but it is digested by your own factory, at least not at a loss. Said the person in charge of Bosai.

Li Xun of the steel network told reporters that although the price of electrolytic aluminum is also falling, it has dropped to about 14,000 yuan, and many electrolytic aluminum plants are facing a reduction in production. However, the Aba Aluminum Plant is located in the disaster area, and the price of electricity has an advantage - only about 0.2 yuan / kWh.

The above-mentioned person in charge of Bosai believes that "In fact, Chinalco's industrial chain is longer, but each branch is independently accounted for, and the cost cannot be shared. The private enterprises have small plates, the mechanism is more flexible, and the decision-making is faster. This is difficult for state-owned enterprises. The advantage of comparison."

Despite the volatility of alumina prices, Boss has a huge plan to expand to 1.2 million tons.

“Our breakthrough is abroad. After Bossa’s large-scale mining of bauxite in Ghana, our costs will be lower,” said the source.

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