The department of raw materials industry of the ministry of industry and information technology released a report on the operation of China's aluminum industry in 2018 on March 5. In 2018, China's aluminum industry will deepen the supply-side structural reform, strictly control the new capacity of electrolytic aluminum, and promote the replacement of electrolytic aluminum capacity. The overall operation of the industry is stable.

One is the year-on-year growth in output, aluminum growth rate decline. In 2018, the output of alumina, electrolytic aluminum and aluminum products will reach 72.53 million tons, 35.8 million tons and 45.54 million tons, up 9.9%, 7.4% and 2.6% respectively, among which, considering the adjustment of statistical data, the growth rate of electrolytic aluminum production will increase by 5 percentage points year-on-year. Due to trade frictions and sluggish domestic consumption, the growth rate of aluminum production dropped by 7 percentage points year-on-year.

Second, the price falls, the cost rises, the benefit slides obviously. In 2018, the average spot price of electrolytic aluminum in China was 14,262 yuan/ton, down 1.8% year on year. Influenced by the rectification of environmental protection, the price of bauxite continued to rise, the price of coal rose, and the cost of energy saving and emission reduction of enterprises, the comprehensive production cost of electrolytic aluminum increased significantly year on year. In 2018, the aluminum industry posted a profit of 37.2 billion yuan, down 40 percent year-on-year. Among them, the profit of aluminum mining and dressing reached 700 million yuan, up 19.6% year on year. The profits of aluminum smelting and aluminum processing industries reached 11.2 billion yuan and 25.4 billion yuan respectively, down 54.6% and 31.4% year-on-year.

Third, the replacement of production capacity has been accelerated and the industrial structure further optimized. On the electrolytic aluminium enterprise through merger and reorganization and other ways to implement capacity replacement related matters notice (ministry of the original [2018] no. 12) printed and distributed, more than 400 ten thousand tons of electrolytic aluminium production completed across the province replacement, among them, more than 300 ten thousand tons of production capacity, transferred to the energy-rich regions such as Inner Mongolia, yunnan, at the same time of keep strict controls of electrolytic aluminium production capacity high pressure situation, electrolytic aluminium industry structure optimized constantly.

Fourth, aluminum exports increased significantly, the international trade environment is not optimistic. Affected by the fluctuation of aluminum price difference at home and abroad and the depreciation of RMB exchange rate, China exported 5.23 million tons of aluminum in 2018, up by 23.4% year on year. The shutdown of the hydro alumina plant in Brazil caused a shortage of overseas alumina supply, and China exported a net 950,000 tons of alumina annually. Chinalco, weiqiao venture group and other overseas bauxite resources development projects continued to advance. The United States, the European Union, Mexico, Vietnam and other trade friction chain reaction highlights, the external development environment is increasingly severe, aluminum exports will face a grim situation in the future.

In 2019, the domestic and foreign environment is becoming more and more complex, the profound impact of trade frictions is about to emerge, the downstream consumption situation is not optimistic, and the downward pressure on the aluminum industry is still large. The ministry of industry and information technology will continue to deepen the reform of the supply side structural, continue to maintain joint related to rein aluminium high pressure situation of the new capacity, strictly carry out the policies of the electrolytic aluminium production capacity replacement, study to establish market-oriented under the rule of law means to solve excess capacity of long-term mechanism, actively expand aluminum applications, on the development of high quality aluminum industry.