stock and fund knowledge  

Last Friday, the SAC announced the 2009 central state-owned assets, household enterprises operating conditions. Aluminum Corporation of China (hereinafter referred to as aluminum) to 7.25 billion yuan of losses, as last year’s “most to lose money,” the central enterprises.

SASAC published data show that the total amount of aluminum in 2009 was -72.5 billion profit, net profit attributable to parent company was -42.5 million owners.

Last year, the aluminum company Chalco’s market also hit the worst performance since its listing. Chalco 2009 annual report by the international financial crisis and the aluminum products market in the industry cycle trough the adverse effects related industries at home and abroad has greatly reduced demand for aluminum, coupled with excess capacity, leading to low aluminum prices Yunxing, Inc. 2009 annual loss of 4.65 billion yuan.

Deputy General Manager of Al Lv Youqing told this reporter that the loss of aluminum last year, mainly due to sluggish aluminum plate.

But the aluminum industry downturn not become an excuse for all the loss of aluminum. Reporter access to the main listed companies in Shandong Aluminum Industry Aluminum, Zhongfu Industrial, Jiaozuo Wanfang and other listed companies in 2009 annual report, the biggest loss is still Chalco.

SW One analyst said the reporter, and other listed companies with the industry compared to aluminum in the highest operating costs and management costs.

According to this reporter learned that the aluminum from the second half of 2009 the company began to streamline the organization, efforts to reduce administrative costs, and gain some success, but Lv Youqing frankly, as the traditional state-owned enterprises, reducing the cost of aluminum is still very difficult.

This year, the Aluminum plate business situation is still grim. Despite the losses of aluminum in a quarter, but entered the second quarter, the alumina price re-diving, there is no excess capacity to ease the situation, the performance of aluminum aluminum plate is not optimistic.

Gold companies said that as serious excess capacity, aluminum will not be the most promising non-ferrous metals.

Central Plains futures also said that the recent, non-ferrous metals showed gains, copper, zinc and once appeared out of high momentum before impact, but the aluminum concern for lack of funds, performance significantly less than the same species. Although during the Chalco alumina spot price will be 2,650 yuan per tonne, up from 100 yuan to 2,750 yuan per ton, but this did not constitute a significant boost aluminum prices. Taking into account the aluminum market fundamentals such as the pent-up demand, excess capacity and other factors continue to suppress the expected short-term weakness in aluminum prices will continue.

Aluminum seems to have realized that continue to rely on traditional aluminum plate to improve performance, it seems little hope. Currently, aluminum is seeking to develop other resources and energy business opportunities.

Mr Xiong, general manager of Al told this reporter that the aluminum will work to extend to the aluminum-related upstream industries to coal, from the power of integration, iron ore and other metals in the field as well as the development of overseas resources development projects of quality.

The most significant objective in the recent action of aluminum with Anglo-Australian mining giant Rio Tinto join forces once again, Guinea in West Africa to develop iron ore. Although with the end of July the two sides have signed a binding treaty, but many of the industry, told reporters that the development in the field of aluminum into the iron ore long way to go.

In addition, aluminum is also the rare earth, tungsten into the fields, but faced with Baotou Steel Rare Earth, Minmetals and Jiangxi Copper equivalent competition. Currently, in addition to aluminum, the aluminum metal resources in other areas of limited harvest.

Aluminum Corporation of China has today suspended the reasons for the suspension “to be disclosed in mid-year report.”