According to the Henan provincial government and other relevant sources, the Ministry of environmental protection of the Beijing Tianjin Hebei and Shanxi, Shandong and Henan 6 provinces to carry out the air quality of the work of the special inspection, random checks related to environmental pollution control work. In addition, recently a Tianjin 2017 atmospheric pollution prevention programs work circulating in the market, the market is expected to cut production of electrolytic aluminum, alumina process began to heat up. The news that aluminum rose about 3% to 14415 yuan / ton, we had repeatedly recommended *st China aluminum Shenhuo trading, rose 5.95%.

Water clear, follow-up is expected to usher in the actual rectification

Beijing, Tianjin and surrounding areas there is a serious problem of air quality, the inspection is intended to make a strong control of the first quarter of the year and even the air pollution prevention and control work. It is understood that the supervision of leaders including Minister of environmental protection Chen Jining and 4 deputy ministers, inspection for a period of one month, is expected to take the special inspection visits inquirer, inspections and spot checks, minister. From the configuration point of view, the central for the environmental situation of 6 provinces and cities pay more attention to pollution control, a clear attitude. Follow up with the actual supervision of the operation, further shut down, penalties and other means of rectification is expected to be implemented.

Aluminum raw material supply side or affected by supervision

The raw material includes alumina, electrolytic aluminum pre baked anode, fluoride and cryolite, and this special inspection provinces in alumina raw materials such as large-scale production capacity. According to the Asian metal network and other agencies statistics, in 2016 Shandong, Henan, Shanxi and other commercial pre baked anode production capacity accounted for more than 70% of the country's proportion, the proportion of its alumina production capacity accounted for more than the national total of more than 75%. In the recent two months, alumina and pre baked anode and other raw materials prices rose significantly, of which nearly two months of prebaked anode prices rose more than 20%. Raw material prices continued to rise in response to supply in the tight state, so the special inspection on the aluminum raw material in the production of key provinces, or of prebaked anode alumina and the price of products such as the marginal effects can not be ignored.

Higher raw material self-sufficiency of enterprises benefit

In our previous report "behind the industry aluminum prices rose is the cost of raw materials up" had stressed, alumina, prebaked anode and other raw materials prices will compress the industry average profit, but the self-sufficiency rate of raw materials enterprises with high cost price is relatively weak influence. At the same time, the inspection will be scattered pollution, the company does not meet the standards of greater pressure, rather than qualified, high environmental standards of enterprises. Therefore, we suggest that the attention of prebaked anode self-sufficiency rate of higher *st and Shenhuo, alumina production scale in the domestic leading position in the Chinese aluminum and alumina self-sufficiency rate is gradually increased yunlvgufen.