【Resource Stocks Performance】Nanshan Aluminum International profit increased by 1% last year; alumina prices continued to decline, and business was under pressure in the first half of the year

Alumina prices have fallen from last year to the present. The semi-new stock, Indonesian alumina manufacturer Nanshan Aluminum International (02610), announced a profit of $408 million for 2025, a slight year-on-year increase of 1.65%; basic earnings per share are $0.72, with a final dividend of HK$0.41 per share, along with an interim dividend of HK$0.65 per share, resulting in a total annual dividend of HK$1.06 per share.

During the period, revenue was $1.141 billion, an increase of 11.87% year-on-year. The gross profit margin was 41.9%, a significant decrease of 8.7 percentage points year-on-year. Alumina sales volume was approximately 2.643 million tons, with an average selling price of about $432 per ton.

Alumina price decline continues, expected pressure on business in the first half

In the alumina market, according to the London Metal Exchange (LME) alumina (Platts) prices, as of the end of March 2025 for three months, the end of June 2025 for six months, and the end of December 2025 for the entire year, the average international alumina market prices were approximately $535 per ton, $447 per ton, and $391 per ton, respectively. As of mid-March 2026, the average international alumina market price was about $307 per ton, indicating that the decline continues.

Chairman and CEO Hao Weisheng admitted that the average price of the international alumina market continues to decline in the short term, which is expected to impact the alumina industry, and the group’s revenue and profits will also be under pressure, especially in the first half of this year. However, he also reassured that the group’s alumina design annual production capacity has reached 4 million tons, further consolidating its position as one of the largest alumina producers in Southeast Asia. Recently, the group has also initiated the preparatory work for the first phase of an electrolytic aluminum project with an annual production capacity of 250,000 tons, with an estimated investment amount of about $436 million and a construction period of two years, planning to add an additional 500,000 tons of capacity in the medium to long term.

Electrolytic aluminum business expected to become new support

He further stated that as the electrolytic aluminum projects gradually commence production, the medium to long term will expand the group’s aluminum business and generate synergies with existing business sectors. The goal is to build a short-distance, complete aluminum industry chain in Indonesia that integrates “upstream resources, midstream smelting, and downstream processing.”

He mentioned that there is a structural shortage in the global electrolytic aluminum market, and with the rigid constraints of the production capacity ceiling in China, demand in areas such as renewable energy, transportation, and infrastructure continues to expand, driving the long-term positive outlook for electrolytic aluminum prices and providing a market basis for the group’s electrolytic aluminum project capacity planning.