HK Movers | Nanshan Aluminium Jumps 13% on Indonesia Smelter Uncertainty, Cost Advantages Stand Out

Tiger Newspress01-07

Nanshan Aluminium shares jumped 12.6% against the market trend, with its stock price accumulating a gain of over 20% for the month.

On the news front, according to Futures Daily, the global aluminum market is in a tight balance, with Indonesia being a key marginal supplier. Although Indonesia has sufficient planned capacity for the long term, its power supply is not prepared for this, and the pace of capacity release may be significantly slower than market expectations. If aluminum prices remain stable above $3,000 per ton, the likelihood of planned projects commencing production as scheduled will increase substantially; if aluminum prices fall below $2,800 per ton, Indonesia's future supply release could be reduced by over 40% compared to expectations.

Nanshan Aluminium's planned 1 million-ton-per-year aluminum smelting project in Indonesia's Bintan Industrial Park is a core initiative to build an integrated "alumina-aluminum" industrial chain overseas. The first phase of the project plans to construct an annual capacity of 250,000 tons, with the main investor being PT. Bintan Electrolytic Aluminium (BEA), involving an investment of approximately 6.063 billion yuan. The project's solid foundation lies in Nanshan Aluminum's existing alumina plant in the same industrial park, Jiancheng , which has a total designed annual capacity of 4 million tons, providing ample raw material security for the aluminum smelting project and offering significant synergistic cost advantages.

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