Data perspective: The new trend of the future development of aluminum in China / green, intelligent and high-end

2024-06-05

Aluminum Products made of aluminum and other alloying elements. Usually it is first processed into casting products, forging products and foils, plates, belts, pipes, rods, profiles, etc., and then made by cold bending, sawing, drilling, assembly, coloring and other processes. The main metal element is aluminum, and some alloying elements are added to improve the performance of aluminum.

Pure aluminum has low strength and its use is limited. However, by adding a small amount of one or several alloying elements, such as magnesium, silicon, manganese, copper, zinc, iron, chromium, titanium, etc., Aluminum Alloys with different properties can be obtained. After cold working and heat treatment, the aluminum alloy is further strengthened and hardened, and its tensile strength is greatly improved.

The construction industry is one of the three major markets for aluminum, about 20% of the world's total aluminum production is used in the construction industry, and the construction industry in some industrial developed countries has accounted for more than 30% of its total aluminum production. The products of building aluminum are constantly updated, and the application of novel building products such as colored Aluminum Plates, composite aluminum plates, composite door and window frames, and aluminum alloy templates is also increasing year by year. China has applied aluminum alloy in industrial and civil buildings to make roofs, walls, doors and Windows, and gradually expanded to internal and external decoration, construction templates, etc., and has achieved good results.

China's aluminum market development prospects are better, with the gradual recovery of the industry, aluminum downstream market is also gradually active, aluminum market demand will be driven by this substantial growth.

Analysis of the status quo of China's aluminum industry

● Continuous expansion of production capacity: With the growing demand for lightweight and environmentally friendly materials in domestic and foreign markets, China's aluminum production capacity continues to expand, forming a complete industrial chain from bauxite mining, smelting to aluminum processing.

● Continuous optimization of product structure: China's aluminum industry is gradually transforming from traditional low-end products to high-performance, high-precision and high-value-added products. Enterprises have increased investment in technological innovation and product research and development, and promoted the optimization and upgrading of product structure.

● Application fields are increasingly extensive: aluminum is widely used in transportation, packaging, construction, electronics and other fields because of its light weight, corrosion resistance, easy processing and other characteristics. With the rapid development of new energy vehicles, aerospace and other industries, the application of aluminum in emerging fields is also expanding.

● The tightening of the national environmental protection policy has had a certain impact on the aluminum industry, promoting enterprises to strengthen environmental governance, the use of clean energy and environmental protection technology, and achieve green production.

According to the "2023-2029 China Aluminum Market Analysis and Investment Prospects Research Report" released by Bosi Data, the cumulative value of China's aluminum production in 2023 reached 63.034 million tons, and the final total increased by 5.7% over the previous year.

Index	December 2023	November 2023	October 2023	September 2023	August 2023	July 2023
Aluminum production current value (tons)	594.6	573.7	550.1	555	548.3	528.4
Aluminum production cumulative value (tons)	6303.4	5732.1	5204.8	4654	4089.2	3549
Year-on-year growth of aluminum production (%)	14	7.6	8.3	5.7	6.6	2.2
Cumulative growth of aluminum production (%)	5.7	5.2	5.7	5.2	4.3	4

Market Outlook

● Demand growth drives market development: With the continuous development of China's economy and the improvement of residents' consumption level, the demand for aluminum will continue to grow. Especially in new energy vehicles, rail transit, aerospace and other emerging fields, aluminum will play a greater role.

● Technological innovation to enhance competitiveness: In the future, technological innovation will become an important driving force for the development of the aluminum industry. Enterprises need to increase investment in research and development, promote product innovation and technological upgrading, improve product quality and performance, and reduce production costs to enhance market competitiveness.

● Green environmental protection has become a development trend: With the improvement of global environmental awareness and the strengthening of national environmental protection policies, the aluminum industry will pay more attention to green production. Enterprises need to adopt clean energy and environmental protection technologies, reduce pollutant emissions, and promote the development of the industry in the direction of green, low-carbon and circular.

● International cooperation brings new opportunities: With the in-depth promotion of international cooperation projects such as the "Belt and Road", Chinese aluminum enterprises are expected to strengthen cooperation and exchanges with international counterparts, expand overseas markets, and participate in global competition. At the same time, it is also necessary to pay attention to risk factors such as international trade frictions and exchange rate fluctuations.

According to the aluminum market analysis report released by Bosi Data, the aluminum investment data of various provinces and cities in 2023 are as follows:

Region	December 2023	November 2023	October 2023	September 2023	August 2023	July 2023
Beijing	0.03	0.02	0.01	0.03	0.01	0.04
Tianjin	5.13	5.67	5.36	5.07	4.43	4.24
Hebei Province	9.63	7.54	5.37	5.57	5.02	4.7
Shanxi Province	4.64	4.17	3.8	3.88	3.81	3.45
the Nei Monggol Autonomous Region	24.19	24.05	20.33	24.55	23.59	24.47
Liaoning Province	7.84	8.3	8.4	8.77	8.34	8.55
Jining Province	1.03	1.03	0.9	1.21	0.92	0.9
Heilongjiang Province	1.35	1.49	1.49	1.52	1.43	1.47
Shanghai	5.96	4.71	4.27	4.19	4.17	4.71
Jiangsu Province	33.49	35.09	32.9	33.67	34.14	33.44
Zhejiang Province	23.52	23.68	21.08	23.49	22.49	20.32
Anhui Province	7.64	7.56	6.57	6.63	6.6	6.15
Fujian Province	12.17	12.66	12.16	12.31	12.01	11.82
Jiangxi Province	27.39	21.68	19.52	21.15	18.34	17.15
Shandong Province	120.77	118.93	117.48	116.14	115.88	112.97
Henan Province	93.55	97.24	94.72	92.88	94.61	88.91
Hubei Province	13.36	11.5	11.66	11.06	11.4	11.52
Hunan Province	8.7	8	7.48	6.2	6.4	6.18
Guangdong Province	60.17	52.86	52.94	52.85	52.67	50.01
Guangxi Zhuang Autonomous Region	41.57	34.51	34.24	34.22	33.21	29.92
Chongqin	17.48	18.42	18.23	18.36	17.72	16.77
Sichuan Province	24.05	22.3	18.65	18.46	17.18	18.42
Guizhou Province	3.27	3.37	2.69	2.67	2.65	2.62
Yunnan Province	4.59	5.63	6.1	6.01	6.63	7.12
Shanxi Province	4.37	3.87	5.85	5.07	4.67	5.29
Gansu Province	4.82	4.97	4.75	4.67	4.68	4.71
Qinghai Province	14.52	14.92	13.65	15.08	15.25	13.45
the Ningxia Hui Autonomous Region	4.14	4.43	4.06	4.67	4.99	3.95
the Xinjiang Uygur Autonomous Region	15.29	15.11	15.45	14.66	15.05	15.13

In summary, after experiencing rapid development, China's aluminum industry is facing new opportunities and challenges. In the future, with the growth of demand, technological innovation, environmental protection requirements and international cooperation, the industry is expected to achieve a more robust and sustainable development. Enterprises need to strengthen internal management, improve product quality, promote green production, expand market space and other aspects of efforts to cope with market changes and challenges.