Aluminum processing is the production of various forms of products through the various processes and processes such as casting, rolling (or extrusion) and surface treatment for the transportation, construction, packaging, electrical, mechanical equipment and other industries. Aluminum deformation processing products can be divided into two categories: aluminum plate with foil and aluminum profile according to different processing techniques. The calendering process produces aluminum sheets with foils, which are widely used in various fields of the national economy; the extrusion process produces aluminum profiles, which are mainly used in the construction industry. Depending on the processing technology, aluminum processed products can be divided into two categories: aluminum profiles produced by the melt-casting-extrusion process; and aluminum strips and aluminum foils produced by the hot-rolling-cold rolling process. Among them, aluminum profiles are mainly used in construction and industrial fields, while aluminum foils are mainly used in home appliances and food and beverage fields.

China’s aluminum consumption is growing strongly. According to the “13th Five-Year Plan” non-ferrous metal industry plan, China’s total aluminum consumption will reach 43 million tons by 2020, and the CAGR will reach 7.24% during 2016-2020. From the current point of view, China’s aluminum processing industry production enterprises can be divided into two major competition groups. The first group is domestic leading enterprises. These companies, such as Chinalco, are listed companies. They have the dual advantages of technology and capital, have strong competitiveness, and have a large market share. The second group It is a small and medium-sized aluminum processing and production enterprise in China. They rely on cost advantages to gain their own place in the market competition at a lower price, and are ready to look for market opportunities. They are expected to be stronger and bigger, and at the same time, they also face Big competition risks, there is the possibility of being eliminated at any time.

At present, China’s annual per capita aluminum consumption or per capita aluminum stocks are far from the developed countries, and the consumption potential is huge. From the specific consumption field, the consumption of aluminum in the fields of construction, structure, automobile, packaging and furniture is very different from that of foreign countries, and the development potential is great. The effectiveness of expanding the application of aluminum has gradually emerged. The proportion of aluminum alloy tankers in the country has reached 8%; the output of aluminum alloy building formwork has exploded. In addition, the commercial application of aluminum air batteries has made breakthrough progress, and the application prospects in the future are limitless. The commercial application of aluminum air batteries will push up the peak consumption of primary aluminum in China and the world.

I. Market operation characteristics of China’s aluminum processing industry

Six highlights of China’s aluminum processing industry in 2017

One of the highlights: international cooperation – the pace of “going out” has obviously accelerated

Driven by China’s “going out” strategy and the “One Belt, One Road” initiative, the pace of Chinese companies’ international and international cooperation has accelerated markedly. In 2017, China’s aluminum processing industry has more frequent cooperation and exchanges with other countries.

China Zhongwang Holdings Co., Ltd. acquired Australian Silver Yacht Co., Ltd. and Germany Unna Aluminum Co., Ltd. Silver Yacht Company and Onna Aluminum Company are the crown jewels of the world aluminum alloy yacht industry and aviation aluminum alloy anti-extrusion seamless industry respectively, opening up the first place for Chinese aluminum processing enterprises to acquire foreign top enterprises, and become the world’s aluminum processing industry for China. Industrial powers are of great significance.

Bohai Piston intends to acquire a well-known company of 75% of the German company.

Highlight 2: Zui glare highlights – international trade friction highlights

In 2017, the international trade friction of aluminum processing materials increased, becoming the highlight of Zui. In 2017, the United States alone initiated a number of trade investigations into China’s aluminum trade. Among them, the double-reverse investigation against aluminum foil was the first double-counter case against the Trump administration, and the countervailing preliminary judgment was imposed 96.81%. With a tax rate of 162.24%, the discriminatory practice of “substitute countries” continued to be used in the case, and the double-reverse investigation against China’s aluminum strips was in the past 40 years. The US Department of Commerce for the first time did not receive formal requirements from relevant industries. Initiated investigation.

Highlight 3: Nanshan Aluminum passed Boeing’s plate certification

On June 28, 2017, Nanshan Aluminium Company was officially incorporated into Boeing’s Gege supplier sequence through the Boeing 7050AMS Aeronautical Sheet Engineering Certification. It is also the aerospace aluminum alloy sheet produced in China and obtained the world’s aircraft manufacturer. The certification of the first largest enterprise has its first certification, and the certifications of other enterprises and organizations will follow. On September 12, 2017, Nanshan Aluminum issued the first batch of orders to Boeing, marking the Chinese aerospace class. The supply capacity of aluminum sheets has reached the international leading level.

Highlight 4: Recycling – Breakthrough in recycling of waste aluminum cans

In 2017, Dazheng Aluminum Co., Ltd. established China’s first 50,000-ton/year 3104 alloy ingot production line, which was jointly developed by Beijing University of Science and Technology and North China Light Alloy Co., Ltd. Aipusheng Recycling New Materials Co., Ltd. built a 3104 alloy flat ingot project in Changge City, Henan Province, using waste aluminum cans. On March 5, 2017, the expert demonstrated. The construction and commissioning of these projects will reverse the situation that China’s waste aluminum can recycling and recycling technology is lagging behind the world’s advanced level for 30 years.

Highlight 5: Localization of aluminum – will gradually increase from 2017 onwards

2017 is an unusual year for China’s spacecraft manufacturing industry. On the one hand, it is the first year for China to become a big country and a strong country. On the other hand, the localization rate of various aluminum materials used will gradually increase from 2017. A substantial increase will be made by the use of national aluminum and poly-aluminum-based materials by 2022, whether it is a bat-like drone or a huge An-225 “fantasy” transport aircraft; whether it is a civil aircraft or Military aircraft; whether it is a tangible aircraft or a new generation of stealth fighters 歼20.

Highlight 6: China Zhongwang-Tianjin aluminum strip project has been put into production

2017 is a key year for the Zhongwang Tianjin aluminum strip project. The first hot rolling line was put into operation in September 2017. The second line equipment is being installed and commissioned. It will be put into operation in the middle of 2018, and 1.8 million tons will be formed by then. The annual production capacity of flat rolling products has become the single enterprise of the world’s large flat rolled aluminum products. In the future, the second phase of construction will be carried out to increase the total production capacity to 3 million tons per year. The base is located in the Auto Parts Industrial Park of Wuqing District, with a total investment of 46.6 billion yuan and an area of ​​about 5.5 million m2.

Second, the structure analysis of China’s aluminum processing industry

Product standards and quality are fully integrated with the international market, and gradually break through the occupation of the international market. China’s major aluminum standards are based on European, American and Japanese standards and are in line with international standards. China GB-T5237 aluminum alloy building profiles national standard and English version have been recognized and adopted by many countries in the world.

Trade friction has become the norm. With the increase in the export volume of China’s aluminum processing products, the enhancement of competitiveness, the rise of international trade protectionism, and increased trade frictions, a few countries even frequently conduct administrative investigations on Chinese aluminum products and file double-difigation proceedings. After the United States conducted 32 competition investigations on China’s aluminum industry in 2016, it launched a double-reverse investigation on aluminum foil in 2017. On October 27, the US Department of Commerce announced the preliminary investigation results of China’s aluminum foil double anti-dumping, and decided to impose an import tariff of 96.8% – 162.2% on aluminum foil imported from China. The final decision of Zui will be announced in February 2018.

Product development is mechanized. A number of aluminum processing industry clusters have been gradually formed throughout China, such as Guangdong Nanhai, Shandong Linyi aluminum alloy construction platform, Henan Gongyi aluminum strip, Liaoning Liaoyang industrial profiles, Shandong Binzhou, Inner Mongolia Hollingrad, Xinjiang Colorful Bay and other places A new model is being formed around the centralized layout of the electrolytic aluminum plant.

The development of aluminum processing enterprises is large. The production capacity of many enterprises has reached 500,000 tons per year, and some even reached the scale of 1 million tons per year, such as Chinalco, Zhongwang Group, Nanshan Aluminum, Feng Aluminum, Xingfa Aluminum, Huajian Aluminum. And other businesses.

Specialization in aluminum processing production. A variety of development models coexist in the industry, more and more companies pay more attention to market segments, such as Jianmei aluminum to produce high-end aluminum profiles; Liaocheng Wanhe production heat exchange system with long and short flat tubes, the domestic market share Gao; Shanghai Huafeng mainly produces brazing composite materials. These enterprises are moderate in scale, but they all have a large share and the benefits are significant.

Product production is customized. Liaoning Zhongwang, Shandong Jungle and other processing enterprises have been transformed from manufacturing vehicle platform to manufacturing rail vehicles. Hunan Tongtong cooperates with logistics companies to produce lightweight high-end trucks. It also cooperates with CNPC to produce lightweight high-end tankers from simple materials. Producers, turned into a total solution provider, just as aluminum profiles become the overall supplier of aluminum doors and windows, product customization is becoming popular.

China’s aluminum profile production enterprises can be divided into three levels according to their production products: The first level mainly includes China Zhongwang, Xingfa Aluminum, Ropeskin, Liyuan Aluminum, Asia Pacific Technology and Nanshan Aluminum. The main business of the company is mainly aluminum profile production, and is actively developing into the field of deep processing. In this level of competition, competition is relatively moderate. The second level of competition includes Dongliang New Materials, Minfa Aluminum, Haomei Aluminum, Weiye Aluminum, Huachang Aluminum, etc. (other companies in the analysis of this report), which have certain brand awareness. However, the scale is relatively small compared to the first-tier enterprises, and there is a certain gap between R&D and innovation capabilities. There are many enterprises at the third level of competition. These enterprises are mainly engaged in the production of low-end products, with fierce competition, insufficient innovation capability and relatively small scale.