1. Huge aluminum processing capacity.
From 2006 to 2016, the accumulated investment in fixed assets of nonferrous metal alloy manufacturing and calendering industry exceeded 2201.4 billion yuan, with an average annual growth rate of 26.97%, of which the proportion of aluminum processing investment basically remained above 45%. A large amount of investment has led to the rapid growth of production capacity (at present, China’s aluminum extrusion production capacity accounts for 76% of the world’s total production capacity; the casting hot rolling production capacity accounts for about 59% of the world’s total production capacity; and the twin roll continuous casting and rolling strip production capacity accounts for about 67.5% of the world’s total production capacity). The export volume of aluminium sheet, aluminum foil and aluminum strip also ranks among the top in the world, with the largest number of world-class equipment.
At present, China has the world’s largest and full range of aluminum surface treatment production lines, the largest number of Sigmak heavy extruders, CVC cold rolling mills, the largest number of Ashenbach aluminum foil mills, and the largest number of hot and cold continuous rolling mills. However, how to make full use of these advanced equipment and play their due role will test the creativity, imagination and ability of industry personnel. Otherwise, it will add a heavy burden.
2. Homogeneous price competition is becoming increasingly fierce.
A lot of investment is focused on high-end aluminum strip and large extrusion products, resulting in structural overcapacity. The more high-end products, the more excess. As a result, product homogeneity competition and price war become increasingly fierce. This phenomenon is widespread from low-end products to high-end products. For example, in recent years, due to homogeneous competition, the processing cost of some products with high added value has become lower and lower. For example, the processing cost of CTP printed board base has dropped from 12000 yuan/ton to 3800 yuan/ton; The processing cost of aluminum alloy can materials has decreased from the original 20000 yuan/ton to less than 4000 yuan/ton; The processing cost of aluminum alloy profiles for high-speed railway carriages has decreased from 50000-70000 yuan/ton to 10000-15000 yuan/ton.
3. There is a good policy environment for the development of aluminum processing.
The Made in China 2025 issued in 2015 and the 13th Five Year Development Plan for Nonferrous Metals Industry to be released clearly propose to accelerate the development of high-performance light alloy materials. As the most important lightweight, energy-saving, renewable and environment-friendly material, aluminum alloy is the first choice in aviation, automobile, construction, electronics and packaging industries.
The General Office of the State Council recently released the Guiding Opinions on Creating a Good Market Environment, Promoting the Restructuring of the Non ferrous Metals Industry, Promoting Transformation and Increasing Benefits, which also clearly proposed to further increase the consumption of non-ferrous materials in aviation, automotive, construction, electronics, packaging and other fields, and focus on the development of aluminum alloy plates for passenger vehicles, aviation and marine use.
Therefore, with the deepening of supply side structural reform, the business environment for the development of China’s aluminum processing industry will be improved.
The Ministry of Industry and Information Technology said that while supporting the expansion of aluminum consumption in traditional areas, it would continue to implement major special projects such as technological transformation, foundation strengthening projects and new materials closely related to the aluminum processing industry, and would also increase targeted and continuous support for key areas such as aviation aluminum materials and car panels. The Ministry of Industry and Information Technology has also successively introduced some specific policies and measures to support the expansion of aluminum application in recent years. For example, at present, aluminum alloy semi trailers and tank cars can enjoy the policies of energy conservation and emission reduction in transportation, recommended models for highway drop and hook transportation, vehicle and vessel tax reduction and exemption. Aluminum alloy heat insulation profiles, color aluminum plates, aluminum alloy building templates, etc. are listed as green building materials.