Xinhua Silk Road - Belt and Road Portal, China's silk road economic belt and 21st Century Maritime Silk Road Website Xinhua Silk Road - Belt and Road Portal, China's silk road economic belt and 21st Century Maritime Silk Road Website
Subscribe CustomBlackClose

Belt & Road Weekly Subscription Form

download_pop

Research ReportCustomBlackClose

The full edition of the report is available at Xinhua Silk Road Database. You can click the “Table of Content” to have a general understanding of it.

Click on the button below to create your account and get immediate access to thousands of articles.

Start a Free Trial

Xinhua Silk Road Database
Industry

Profits in nonferrous sector surge on reforms

August 23, 2018


Abstract : China's major nonferrous companies experienced a profitability surge in the first half of 2018, with analysts forecasting the industry's prospects are likely to remain promising throughout the year.

中国铝业集团

BEIJING -- China's major nonferrous companies experienced a profitability surge in the first half of 2018, with analysts forecasting the industry's prospects are likely to remain promising throughout the year.

The strong half-year performance was mainly driven by ongoing supply-side reforms boosting product prices and deepening State-owned enterprise reforms, revitalizing SOEs, many of which lead the industry, analysts said.

"The country's supply-side reforms in the industry have had a substantial effect on the supply side. The reforms will continue to rebalance supply and demand to help the industry to develop," said Zhou Lisha, a researcher at the State-owned Assets Supervision and Administration Commission's research center.

In the past five years, the nonferrous industry has eliminated 2.4 million metric tons of outdated production capacity and 5.66 million tons of inefficient capacity, according to Zhou.

The supply-side reforms are closely integrated with the SOEs' deepening reforms, such as technological transformation and corporate restructuring, which are contributing to the industry's overall performance, she said.

A report by TF Securities said cutting outdated capacity in the steel sector has led to high demand for minor metals, such as molybdenum, manganese and vanadium, that are often used in high-end steel production.

Aluminum Corp of China Ltd recorded operating income of 82.06 billion yuan ($12 billion) and net profit of 1.36 billion yuan, according to its semi-annual report.

As of June 30, the SOE's debt-to-asset ratio was 66.72 percent, with a decrease of 0.55 percentage point from the end of 2017. Its net cash inflow reached 6.74 billion yuan, a record high in the past five years and an increase of 1.38 billion yuan year-on-year.

Other major listed nonferrous companies, mostly State-owned or with mixed public-private ownership, also reported high profit increases in the first half of 2018.

However, an official with the China Nonferrous Metals Industry Association, who asked to remain anonymous, said despite most major listed companies in the industry operating well and reporting increased profits, not every business is faring well. (Source: China Daily)

Scan the QR code and push it to your mobile phone

Keyword: Chinese-nonferrous-companies

Write to Us belt & road login close

Do you want to be a contributor to Xinhua Silk Road and tell us your Belt & Road story? Send your articles to [email protected] and share your stories with more people.

Click on the button below to create your account and get im http://img.silkroad.news.cn/templates/silkroad/en2017te access to thousands of articles.

Start a Free Trial

Ask Us A Question belt & road login close

If you have any questions, please enter them in the box below.

Identifying code Reload

Write to Us belt & road login close

Do you want to be a contributor to Xinhua Silk Road and tell us your Belt & Road story? Send your articles to silkroadweekly@xinhua.org and share your stories with more people.

Click on the button below to create your account and get im http://img.silkroad.news.cn/templates/silkroad/en2017te access to thousands of articles.

Start a Free Trial