China Economic Industry Research Institute


1、 Aluminum processing industry chain

Due to the low mechanical properties of pure aluminum, it is not suitable to make structural parts bearing heavy loads. The aluminum alloy made by adding some alloy elements into pure aluminum can not only retain the advantages of low density and corrosion resistance of pure aluminum, but also has the mechanical properties that the relative specific strength limit of aluminum alloy is close to or even exceeds that of alloy steel. Due to the excellent characteristics of aluminum, aluminum alloy can gradually replace wood, steel, plastic and other materials.

Aluminum processing is to produce the final products for different industries from aluminum ingots (or recycled aluminum) through a variety of processes and processes such as casting, rolling, extrusion and surface treatment. The aluminum processing industry is divided into three sub industries: upstream electrolytic aluminum, midstream aluminum processing and downstream consumption. China has become the world's largest electrolytic aluminum producer, ensuring the timely and sufficient supply of raw materials for the aluminum processing industry. At the same time, China's aluminum consumption accounts for 59% of the world's total, making it the world's largest consumer.

2、 Upstream analysis of aluminum processing industry chain

1. Bauxite

Bauxite is a very important mineral resource and the core raw material in the upstream of the aluminum processing industry chain. China's bauxite resource reserves are small, and the domestic bauxite supply cannot meet the strong demand for a long time. In 2021, China's bauxite reserves will account for only 3.13% of the world's bauxite reserves. In terms of output, according to statistics, the bauxite mineral quantity in China will be 85 million tons in 2021.

2. Alumina

Aluminum oxide is a stable oxide of aluminum, which is insoluble in water, odorless, tasteless, extremely hard, and easy to absorb moisture without deliquescence (the burnt one does not absorb moisture). It is a typical amphoteric oxide, and is also called bauxite in mining, ceramics and material science. From the perspective of alumina industry output, according to the data of the National Bureau of Statistics, the cumulative output of alumina in China will be 77.475 million tons in 2021, an increase of 4.343 million tons over 2020.

3. Electrolytic aluminium

Electrolytic aluminum is aluminum obtained through electrolysis. Electrolytic aluminum products are widely used in traditional fields such as construction, transportation, power, packaging, household appliances, etc. At the same time, with the increasing requirements of green energy, environmental protection and emission reduction, they are also increasingly used in emerging industries such as rail transit, new energy vehicles, photovoltaic power stations, wind power equipment, etc.

With the increasing demand for electrolytic aluminum in the market, the output of electrolytic aluminum in China has also grown steadily. However, due to the strict control of production capacity under the concept of "double carbon" in recent years, the growth of electrolytic aluminum output in China is relatively small. According to data, the output of electrolytic aluminum in China will be 38.503 million tons in 2021, with a year-on-year growth of 3.8%.

From the perspective of market competition pattern, the concentration of China's electrolytic aluminum industry will be low in 2020, with the industry CR3 of 31%, of which China Hongqiao accounts for 14%, China Aluminum accounts for 11%, and Yunnan Aluminum accounts for 6%.

4. Recycled aluminium

Recycled aluminum refers to aluminum alloy obtained from waste aluminum as the main raw material through pretreatment, smelting, refining, ingot casting and other production processes. From the perspective of the output of the renewable aluminum industry, according to the data of China Nonferrous Metals Industry Association, the output of the renewable aluminum industry in China will be 8 million tons in 2021, and is expected to reach 860 million tons in 2022-2023.


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