Oversupply of funds into a resurgent aluminum company

At present, recycled aluminum enterprises are facing many difficulties, but the oversupply and shortage of funds are the major problems that currently plague companies.

Recently, issues such as power cuts for downstream companies of recycled aluminum, and the decreasing demand in Japan have become more and more concerned by the market, and they are concerned about the future demand for recycled aluminum. Issues such as power curtailment, Japan's demand, etc., although the demand for recycled aluminum will be somewhat inhibited in the near future, the overall impact is relatively limited. For reclaimed aluminum companies, the biggest problem is the oversupply and shortage of funds.

In recent years, with the rapid development of the domestic automobile industry, automobile consumption has steadily increased, and this has boosted the rapid development of the recycled aluminum industry. Renewable aluminum companies have expanded their production capacity and invested in the establishment of new plants. Some companies that were not involved in the production of recycled aluminum are also ready to enter the recycled aluminum industry. The continuous expansion leads to excess supply and plagued the operation of recycled aluminum enterprises. According to statistics, the domestic production capacity of aluminum alloy ingots has exceeded 5 million tons. The oversupply of the market is obvious. Manufacturers compete for customers' vicious competition, and the price war is waged. The industry profits are continuously compressed. Every ton of aluminum alloy ingot is only about 2% of small profits, and some companies even have losses.

At the same time, the shortage of funds has also made the aluminum recycling companies miserable. Since the second half of last year, the government has implemented a tightened monetary policy and repeatedly raised the deposit and loan interest rate and deposit reserve ratio of financial institutions. The tightened monetary policy makes the renewable aluminum company's funds relatively tight. Although the downstream customers' demand is still relatively stable, the purchase payment uses more methods such as deferrals and acceptances, which causes problems for the revolving aluminum company's cash flow. At present, the difficulty of discounting has further exacerbated the situation of corporate funds. A recycled aluminum company said that the overall order is good, but most downstream companies purchase depots, and the arrears cycle is mainly 30 days and 45 days. Overdue defaults are also more common, which leads to their unsmooth running of funds and the inability to produce all of the production capacity. Full.

Among the many negative factors faced by the company's production and operation, the current shortage of funds and oversupply are the major problems affecting the recycled aluminum companies. However, as the state encourages the development of the recycling industry, the steel demand will continue to grow, and the aluminum recycling industry will still have room for development. The aluminum recycling enterprises must take a rational view of the market and grasp the market rhythm to overcome the existing difficulties.