Asian Metal visits Nanshan Light Alloy and Longkou Donghai Alumina

On December 13, 2013, Mr. Friday Gao, manager and senior analyst from the Base Metal Department of Asian Metal visited Nanshan Light Alloy Co., Ltd. and Longkou Donghai Alumina Co., Ltd. in Shandong province.

Mr. Lv Zhengfeng, the general manager of Nanshan Light Alloy met with Mr. Gao from Asian Metal. According to Mr. Lv, they produce aluminum processing products like aluminum sheet & strip and aluminum foil with annual capacity at 500,000t and 30,000t respectively. Their products are mainly used for packing and the export volume accounts for 30% of their production.

Mr. Lv was pessimistic about the market in 2014. He said that both upstream and downstream aluminum markets were sluggish. The supply for downstream products is excess.

Mr. Sui Ming, the general manager assistant and Mr. Lv Hengyi, sales manager from Longkou Donghai Alumina talked about bauxite and alumina markets with Mr. Gao from Asian Metal. Mr. Lv said that the alumina market was poor and they mainly consume alumina by themselves right now. The alumina capacity is 1.6 million tons per year for their refinery.

Regarding the bauxite import market, Mr. Sui Ming pointed that many alumina refineries hold large bauxite stocks on hand, so they are not worried about Indonesia export ban. They now consume around 400,000t of Australian and Indonesian bauxite each month in total with the former accounting for more than 50%.