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Analysis of raw material capacity and market demand in the aluminum industry

Jun. 12, 2019
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Core Abstract: The content of aluminum in the earth's crust is second only to oxygen and silicon, ranking third, and it is a metal element rich in * content in the earth's crust.The development of three important industries of aviation, construction, and automobile requires that the material properties have the unique properties of aluminum and its alloys, which is greatly beneficial to the production and application of this new metal aluminum and is widely used.The rapid growth of China's economy has generated huge demand for aluminum, which has promoted the rapid development of the domestic aluminum industry.


Analysis of raw material capacity and market demand in the aluminum industry

The content of aluminum in the earth's crust is second only to oxygen and silicon, ranking third, and it is a metal element rich in * content in the earth's crust.The development of three important industries of aviation, construction, and automobile requires that the material properties have the unique properties of aluminum and its alloys, which is greatly beneficial to the production and application of this new metal aluminum and is widely used.The rapid growth of China's economy has generated huge demand for aluminum, which has promoted the rapid development of the domestic aluminum industry.


Looking back on the development data of more than 60 years, the total economic output of China has increased by 1 trillion yuan, and the output of electrolytic aluminum has increased by 520,000 tons, and the correlation coefficient between the two is as high as 0.988. Especially in the past 15 years, The aluminum was be used 3.65 million tons to 31.64 million tons between 2001 to 2015 because of more than 10% annual GDP growth rate in China. With an annual growth rate of 16%, it is higher than annual GDP growth rate of 0.6%.


Analysis of raw material capacity and market demand in the aluminum industry

Aluminum Corporation of China has its own characteristics of industrial clustering, scale, and specialization. Driven by key enterprises and local governments, a number of characteristic industrial clusters and aluminum processing bases have been formed, and a number of large-scale, powerful and influential aluminum processing enterprises have emerged.At present, there are more than 20 listed companies in China's aluminum processing industry, and most of them can rely on the capital market to seize opportunities, seize market opportunities and achieve sound development, becoming an industry leader.In recent years, the development of China's aluminum industry has shown nine characteristics: large investment scale, rapid growth of production capacity and output; high starting point of new projects, high level of technical equipment; continuous improvement of industrial chain integration; industrial clustering, scale, and specialization It has characteristics; the overall product development capability is improved, and the import substitution process is accelerated; under the influence of various factors, the export of aluminum products is obviously driven by the industry; mergers and acquisitions and industrial integration are accelerated; capital operation and listed financing promote the growth of advantageous enterprises; aluminum processing The internationalization of enterprises began to take off.


In December 2016, China's aluminum output was 5.138 million tons, an increase of 3.3% year-on-year.From January to December 2016, China's aluminum output was 57.761 million tons, up 9.7% year-on-year.Alumina production will increase as the factory resumes production and capacity is temporarily suspended last year.The aluminum industry is an important basic industry of the country. Due to repeated construction and overcapacity; in addition, the macroeconomic outlook is deteriorating. The strong rebound of the US dollar index has significantly pressured the base metals, coupled with the continued sluggish consumer industry, which has reduced the profit margin of the aluminum processing industry.In the face of severe conditions, the state has focused on resolving excess capacity and proposed four batches of “digesting a batch, transferring a batch, integrating a batch, and eliminating a batch”, actively promoting supply-side reform, accelerating the elimination of backward production capacity in the aluminum industry, and launching new capacity. The speed is greatly slowed down.In the "Thirteenth Five-Year Plan" period, the aluminum industry should be transformed from scale expansion to ecological industry, relying on technological progress and industrial adjustment to achieve harmonious development of industry, ecology, and society; from domestic resource development to the development of two resources at home and abroad.Therefore, the development prospects of China's aluminum industry is very broad.


NO.1 ,Distribution of domestic products and raw material production bases

According to incomplete statistics, there are nearly 800 production and processing aluminum profile enterprises in China at present, among which the top three provinces are: Guangdong Province, accounting for 24% of the total; Shandong Province, accounting for 16% of the total; Jiangsu Province, accounting for 13% of the total.The private aluminum profile enterprise group is comprise of three construction aluminum industry developed areas. There are PRD(Pearl River Delta), Yangtze River Delta and Bohai Bay.


NO.2 the analysis of the development of product and raw material industry clusters

Aluminum Corporation of China has its own characteristics of industrial clustering, scale, and specialization. Driven by key enterprises and local governments, a number of characteristic industrial clusters and aluminum processing bases have been formed, and a number of large-scale, powerful and influential aluminum processing enterprises have emerged.At present, there are more than 20 listed companies in China's aluminum processing industry, and most of them can rely on the capital market to seize opportunities, seize market opportunities and achieve sound development, becoming an industry leader.


In recent years, the development of China's aluminum industry has shown nine characteristics: large investment scale, rapid growth of production capacity and output; high starting point of new projects, high level of technical equipment; continuous improvement of industrial chain integration; industrial clustering, scale and specialization It has characteristics; the overall product development capability is improved, and the import substitution process is accelerated; under the influence of various factors, the export of aluminum products is obviously driven by the industry; mergers and acquisitions and industrial integration are accelerated; capital operation and listed financing promote the growth of advantageous enterprises; aluminum processing The internationalization of enterprises began to take off.


Aluminum processing enterprises are not only striving to achieve the upward integration and downward integration of the industrial chain, but also the process of mergers and acquisitions and industrial integration is accelerating, including the reorganization of aluminum processing enterprises, the joint restructuring of domestic and foreign enterprises, and the direct exit of the country. And form alliances with foreign downstream enterprises. Enterprises such as Xingfa Aluminum, Nanshan Aluminum, China Zhongwang, Asia, Guangyin Aluminum, and Gaodeng Aluminum have begun cross-regional, cross-border investment, industrial transfer, and strategic cooperation. Surging in the tide.


Due to the continuous improvement of the integration of the industrial chain, the direct supply of aluminum liquid to the short-process production of aluminum extruded round ingots (aluminum rods) and the proportion of rolled slabs continue to increase. At present, large and medium-sized enterprises that extend the aluminum processing business of electrolytic aluminum production enterprises have 36 homes.


NO.3  Analysis of raw material capacity in 2015-2016

Looking back on the development data of more than 60 years, the total economic output of China has increased by 1 trillion yuan, and the output of electrolytic aluminum has increased by 520,000 tons. The correlation coefficient of the two is as high as 0.988. Driven by the continued growth in demand, China's electrolytic aluminum production continues to increase. Until 2000, China's electrolytic aluminum market supply and demand changed from a serious shortage to a basically flat. However, between 1992 and 2015, China still imported a total of 960,000 tons of electrolytic aluminum.


In 2015, the average labor productivity of China's electrolytic aluminum enterprises reached 260 tons / year, 20 times that of 2000, and some enterprises even exceeded 500 tons / year.


1. Analysis of China's aluminum industry supply

In December 2016, China's aluminum output was 5.138 million tons, an increase of 3.3% year-on-year. From January to December 2016, China's aluminum output was 57.761 million tons, up 9.7% year-on-year.


In December 2015, China's aluminum production was 4.951 million tons, a year-on-year increase of 14.6%. From January to December 2015, China's aluminum output was 52.364 million tons, a year-on-year increase of 9%.


2. Analysis of product output of China's aluminum industry

China's aluminum manufacturing industry has long concentrated on the output of low-end aluminum products, ignoring the industrial chain of high-end aluminum products, resulting in a large number of high-end aluminum products relying on imports. In the implementation of the supply-side structural reform, low-end aluminum products were the first to be de-capacity. Fortunately, China's aluminum industry structure has been developing to the high end in recent years. For example, many aluminum companies in China have begun to focus on the production of aluminum water for the production of aluminum rods that are more environmentally friendly. The ratio of aluminum water production to primary aluminum production increased from 60.7% in 2015 to 76.5% in 2016.