Analysis on the development of China’s aluminum in 2020

1. Development of aluminum industry

(1) characteristics of aluminum alloy

Aluminum is a soft, malleable, silvery white metal, the third most abundant element in the earth’s crust (after oxygen and silicon), and the most abundant metal, accounting for about 8% of the earth’s solid surface mass. Aluminum is very active in chemistry, so it is difficult to find free aluminum except in very special redox environment. At present, more than 270 kinds of aluminous minerals have been found in the world, among which bauxite is the most important one. Aluminum and aluminum alloys are widely used in solar photovoltaic, building, automobile, rail transit, electronic appliances, machinery, daily consumer durable goods and packaging materials due to their light weight, easy processing, corrosion resistance, thermal conductivity and strong recyclability. With the development of aluminum alloy technology, especially in strengthening and toughening, structure weight reduction, corrosion resistance, service life, safety and reliability, the demand for aluminum alloy materials with high alloy and high comprehensive properties is gradually increasing.

(2) production of aluminum and aluminum alloy in China

According to the “analysis report on the operation status and investment direction of China’s aluminum industry from 2020 to 2026″ released by intelligent research consulting, China is a big country in aluminum production and consumption, and the output of alumina and primary aluminum ranks first in the world. In 2019, China’s alumina and primary aluminum output are 72.4742 million tons and 35.0436 million tons respectively.

Aluminum alloy is one of the most widely used non-ferrous metal structural materials in industry. It has been widely used in new energy, energy-saving building, automobile, household appliances, electronic power, aviation, aerospace, machinery manufacturing, shipbuilding and chemical industry.

(3) the processing industry chain of aluminum and aluminum products industry

The processing industry chain of aluminum and aluminum products industry refers to the whole industrial chain in which alumina is extracted from bauxite, then made into electrolytic aluminum, then processed into various aluminum materials, and finally applied in downstream products.

2. Favorable factors

(1) Policy encouragement and support

In recent years, the relevant national authorities have issued a series of policies to promote the development of aluminum alloy materials, especially the high-end materials manufacturing industry. A series of national policies and plans, such as the special plan for scientific and technological innovation in the material field during the 13th Five Year Plan period, the guide catalogue of key products and services of strategic emerging industries (2016 Edition), and the technology roadmap of energy saving and new energy vehicles, etc., have listed the aluminum alloy industry as the key development field, and made clear the development planning, development focus and policy support of the industry, especially the support In addition, the field of automobile lightweight, high-strength aluminum alloy and high-performance aluminum profile continues to receive favorable policies.

(2) The stable growth of macro economy promotes the steady development of various industries

In recent years, the overall economic growth has remained stable, with GDP rising from 54.04 trillion yuan in 2012 to 90.03 trillion yuan in 2018. Among them, the industrial GDP increased from 20.89 trillion yuan in 2012 to 30.52 trillion yuan in 2018, and the total output value of construction industry increased from 3.69 trillion yuan in 2012 to 6.18 trillion yuan in 2018. The rapid growth of macro-economy has greatly promoted the development of urbanization and industrialization in China. The urbanization rate will exceed 60% in 2019, and China has entered the mid-term accelerated stage of urbanization. At present, China’s urbanization rate is still lower than the average level of developed countries, and there is still a lot of room for urbanization in China. The development of urbanization will drive China’s industry and construction industry to maintain a high level for a long time. In addition, China has become the global manufacturing center, and more and more industrial industries are transferred to China or the global procurement center is located in China, which will further promote the demand for domestic industrial aluminum alloy materials. The steady growth of national economy will bring the development of various industries, and the demand growth of industrial aluminum profiles and architectural aluminum profiles brought by the development of downstream industries will be conducive to the expansion of the industry.

(3) The deep application of aluminum profiles and the vigorous development of emerging downstream industries will bring broad market prospects

Compared with other widely used materials, aluminum alloy materials have the advantages of wide distribution, easy processing, light weight, high strength and corrosion resistance, and will be widely used in various industries, especially in the fields of new energy, rail transit, automobile lightweight, electronic and electrical appliances, and will replace traditional metals such as iron, steel, copper and wood in many application scenarios At the same time, with the vigorous development of the above emerging industries and the continuous progress of aluminum profile processing technology, the demand for aluminum profiles in various fields, especially the middle and high-end aluminum profiles market, will be more vigorous and the market prospect will be broader.

(4) The upstream raw material supply is sufficient

The main raw material of aluminum profile is electrolytic aluminum. China is a country with large production of electrolytic aluminum in the world, accounting for more than 50% of the world’s total output. In 2018, China’s electrolytic aluminum production was 35.8 million tons, which provided sufficient supply for downstream aluminum processing enterprises. In addition, aluminum alloy has the characteristics of easy recovery and recycling, and the recovery rate is up to 95%. The continuous expansion of waste aluminum production will form an effective support for the supply of aluminum profile industry in China. Further release of production capacity of upstream electrolytic aluminum enterprises will be conducive to the continuous supply of raw materials and price stability.

Post time: Sep-02-2020