Asian Metal visits Qinghai Yellow River Hydro-power Secondary Aluminum, Yellow River Xinye, Chalco Qinghai, Qinghai Wuchan and Qinghai Qiaotou Aluminum & Power

On March 7-8, Asian Metal visited part aluminum plants in Qinghai province, including Qinghai Yellow River Hydro-power Secondary Aluminum, Yellow River Xinye Co., Ltd., Chalco Qinghai Branch, Qinghai Wuchan Industrial Investment Co., Ltd., and Qinghai Qiaotou Aluminum & Power Co., Ltd.

On March 7, associate analyst Friday Gao and analyst Cherry Gao from Asian Metal firstly visited Qinghai Yellow River Hydro-power Secondary Aluminum Co., Ltd with aluminum ingot capacity of 500,000tpy. Vice general manger Liu Wenjian from the company talked current aluminum market with analysts from Asian Metal. According to Mr. Liu, the aluminum ingot price may go down further because of sufficient supply but sluggish demand. The aluminum ingot capacity in Qinghai is surplus. Although their power cost is much lower, they also suffer losses under current market.

Mr. Ma Jun, purchasing director and Mr. Jing Yuande, marketing director from Qinghai Yellow River Xinye with aluminum ingot capacity of 550,000tpy met analysts from Asian Metal in March 7. Mr. Jing from the company showed concern on the current sluggish aluminum market. Sales manager Mr. Han Yuhai from the company told Asian Metal that after many new aluminum ingot projects come on stream, the market may move down further in the second half of this year. The aluminum ingot stocks in East China are high-held.

On March 8, Asian Metal visited Chalco Qinghai firstly. Manager Ma Ming from purchasing department and vice general manger Xing Zhanxiong had a talk with analysts from Asian Metal. Mr. Ma showed worry on the current aluminum market. China should cut aluminum ingot capacity for a healthy market development. Mr. Xing expressed that the possible state reservation of aluminum ingot may not push up the aluminum market because of weak demand.

Asian Metal then visited Qinghai Wuchan Industrial Investment Co., Ltd., a new aluminum ingot plant with capacity of 100,000tpy. Vice general manager Mr. Fan Dengfu told Asian Metal that they firstly put 50,000tpy into production and the total capacity will reach 400,000tpy in the long run. They enjoy policy and power charge edges compared with other plants in Qinghai.

In the afternoon of March 8, Asian Metal visited Qinghai Qiaotou Aluminum & Power Co., Ltd. with aluminum ingot capacity of 300,000tpy. Vice purchasing director Mr. Su Zengqiang from the company told Asian Metal that they have no intention to enlarge capacity again. Most aluminum ingot plants gathered closely in Xining, leading to environment pollution.