Bloomberg reported that the loss is USD 1.8B with 35% of companies losing money or 89 of 281 aluminum enterprises.
Mr Qin Junman VP of China Nonferrous Metal Industry's Foreign Engineering & Construction Company said that;
1. Industry still expanding, with 2,700 kilo tonne per annum smelting capacity estimated to be under construction, mainly in Xinjiang, Qinghai, Gansu and Inner Mongolia
2. Domestic bauxite production didn't meet demand of alumina refineries in China
3. Domestic bauxite grades poorer
4. Avg. power costs for aluminum smelters before taxes is highest in China, followed by Brazil, US, Australia, India, Norway, Russia, Canada and finally UAE
5. Government support required: government to buy and store ingot to cut inventory.