Aluminum and aluminum alloy are currently one of the most widely used and most cost-effective materials. Aluminum alloy is widely used in manufacturing such as planes, automobiles, railways and ships. Besides, space rocket, space shuttle and satellites also consume a huge amount of aluminum and aluminum alloy.
In 2016, the production volume of electrolytic aluminum was 31.87 million tons, barely changed compared with 31.67 million tons in 2015. From 2001 to 2016, the production volume of electrolytic aluminum increased from 3.63 million tons to 31.87 million tons, with the CAGR of 15.6%. Since 2010, the aluminum consumption per capita reached the average level of developed countries. Electrolytic aluminum manufacturers in China are expanding production capacity, presenting a serious overcapacity. China takes up only 3% of the global bauxite reserves, while it accounts for over 20% of electrolytic aluminum production. China’s electrolytic aluminum industry is not only faced with a serious overcapacity but also highly independent on imported raw materials.
CRI analysis shows that the terminal downstream industries of aluminum products include construction, transportation, power and electronics, consumer durables and machinery industries, taking up 39%, 17%, 16%, 14% and 7% respectively. As one of the countries with the richest aluminum products varieties, China has over 300 kinds of alloys and over 1,500 categories aluminum products. China’s aluminum products are used not only for domestic consumption but also for exports. In 2015, China exported 4,195,200 tons of aluminum, taking up 8% of the domestic production. With the upgrading manufacturing in China, high-end aluminum processing enjoys good prospects.