Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

China Hongqiao’s aluminium alloy output dropped by 11.3pc to 5.65mn mt in 2019 from the previous year, on production restrictions imposed by the government during winter season. Output of aluminium fabrication products rose by 25.3pc to 630,000mt.


The company also attributed  the fall in alloy output to rainstorms caused by Typhoon Lekima which flooded two plants closing potlines, along with the company’s transfer of existing 2mn mt of smelting capacity from Shandong province to Yunnan in south-west China in an effort to adopt cleaner energy processes. China Hongqiao’s current annual production capacity is 6.5mn mt.


In addition to internal obstacles, the company also addressed factors such as the trade war, global economic slowdown along with other external challenges in 2019. In 2020, China Hongqiao expects the outbreak of COVID-19 to have significant impact on China’s domestic production and consumption, as on the global aluminium supply chain. The company, however, is optimistic about the growing EV automotive sector and home appliance industry to provide demand this year. Hongqiao also intends to increase production lines for secondary aluminium output.


China Hongqiao, the world’s largest aluminium producer hit sales volumes of 5.06mn mt of aluminium alloy in 2019, down by 0.8mn mt from the previous year, while sales volumes of aluminium fabrication products rose by 26.4pc to 623,000mt.


The company achieved net profit of $862mn in 2019, up by 12.7pc from the previous year, despite fall in output, on lower purchase prices of raw materials such as coal and anode carbon blocks.










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