Shenhuo shares: the company’s alumina purchases are based on the long-term association as the main price for dynamic settlement

Some investors asked Shenhuo shares (000933) a question, hello, secretary of the board of directors! After inquiring about relevant information, it takes about 2 tons of alumina to produce 1 ton of electrolytic aluminum. Through the 21-year semi-annual report released by the company, it is known that the company’s alumina currently relies on outsourcing on the raw material side. What is the pricing strategy of the company’s agreement with the supplier? Use long-term agreement or dynamic price? Recently, domestic alumina prices have soared, is there pressure on the company’s cost side? What are the short-term countermeasures?

The company replied, thank you for your attention, the company’s alumina procurement is mainly based on long-term cooperation, and the price is dynamically settled; last year, the company participated in Guangxi Longzhou Xinxiang Aluminum Industry to improve the industrial chain and resist market risks. At present, there are many factors driving the price increase of alumina, including the increase in the price of alumina raw materials, the impact of environmental protection policies, the increase in sea freight, and some turbulent international situations. The company is actively paying attention to it and actively taking effective measures to respond to market changes.

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