“There are indeed surpluses in some areas of aluminum processing in China, and some surplus trends are further developing. Our enterprises should pay great attention to calm thinking. We must look at the direction when we increase investment, and we must have a global analysis to avoid causing huge losses.†Pan Jiazhu, chairman of the China Non-Ferrous Metals Processing Industry Association, said that he recently attended the Shanghai Aluminum Industry Association's 20th anniversary and the Yangtze Delta Aluminum Summit.
China is a big country in the aluminum industry and has already occupied the first place in the aluminum industry in many countries. However, the excessive growth of production capacity has also highlighted the problem of excess. In recent years, electrolytic aluminum with serious excess production capacity has experienced a decline in the capacity utilization rate of the industry and companies have suffered losses. This excess trend was also passed to the downstream aluminum processing industry. Although experts repeatedly called for vigilance over overheated and overcapacity in some areas of aluminum processing two or three years ago, the enthusiasm of investors remains unabated. From January to October this year, China's non-ferrous metals industry completed a total investment of 210.9 billion yuan in fixed assets, an increase of 16.73% over the same period of last year, of which non-ferrous metal processing completed fixed assets investment of 70.6 billion yuan, an increase of 31.6% over the same period last year, higher than the entire non-ferrous industry The growth rate of investment was 14.98 percentage points, accounting for 33.48% of the chromochrome industry, an increase of 3.79 percentage points over the same period of last year. This fully shows that the current aluminum processing industry is still favored by all walks of life.
“The investment in aluminum processing industry has not stopped, and the financial crisis has caused some companies, especially some local governments, to buck the trend and invest heavily in aluminum processing. Because some people do not know enough about the current situation of aluminum processing in China, there have been some rashes. There are many projects currently under construction and planned. The preliminary statistics include 10 casting and rolling projects, 16 hot rolling projects, 38 cold rolling projects, and 15 national projects. These investment fevers will certainly bring about more intense The competition.†Dong Chunming, general manager of Shanglite Metal Information Consulting (Beijing) Co., Ltd., also expressed concern over overheated investment in aluminum processing.
The figures cited by Pan Jiazhu illustrate the overheated development in some areas of aluminum processing in the past two years. “In 2006, there were only two 1+4 production lines for aluminum sheet hot strip rolling in China. Now there are 1+2, 1+3, 1+4, and 1+5, including those under construction. A total of eight hot strip rolling production lines, if analyzed by the production of cans, including several production lines such as Nanshan, can meet domestic needs completely after normal production, and can be exported in small quantities, including other ingot production lines. According to the calculations, China will have a total production capacity of 5.4 million tons by the end of next year, surpassing the United States, ranking first in the world, and will be able to meet domestic demand in the next 10 years. In addition, in 2006, there were already 10 ultra-wide foil rolling mills under construction. 13 units, now totaling 26 units, accounting for 72% of the world total, China's aluminum foil output reached 1.32 million tons in 2008, far more than the United States and Europe.Since 2004, China has become a net exporter of aluminum foil, but domestically for the aluminum foil industry The investment is still increasing, there are still many new projects, and companies are expanding.The third large-scale extrusion machine has 9 production lines in 2006 and 10 under construction. Now China has large-scale extrusion. 30 machines, of which more than 800 There are 8 heavy-duty extruders of 0 tons, almost all of which are used in the production of transportation industry.The production capacity of aluminum extrusion materials is expected to reach 117,500 tons next year and 370,000 tons in 2015. Industry experts estimate that by 2014, The average annual total demand for extruded aluminum used in rail vehicles in China is only 670,000 tons, and the centralized construction of China’s railways and subways will be completed by 2015. After 2015, the market sales will be reduced for vehicles. Demand, the investment and construction of the railway will decline."
"But the surplus is not absolutely a bad thing. Moderate excess is needed." Pan Jiazhu also pointed out that it is necessary to correctly understand the problem of overcapacity. It is precisely because there is excess, only the survival of the fittest. “With adequate excess capacity, we can guarantee the normal supply of downstream industries; and, the new production capacity that causes excess capacity should be advanced, and a modest surplus of production capacity can promote the withdrawal of backward production capacity; in addition, there is still a time ahead for excess capacity. The problem was that the excess at the time did not mean that it would still be surplus in the following years; finally, whether or not the production capacity was surplus could not only consider the domestic market. When China's technical products have reached the international advanced level, they can join the international market,†he said.
Despite this, the development of excess trends still deserves our vigilance. Because serious excess production capacity not only brings disorderly competition and idle resources, but also the large amount of exports brought by surplus production capacity can easily cause trade friction and encounter anti-dumping. Since the beginning of this year, China has encountered a number of anti-dumping incidents, which have brought great influence on the industry and enterprises. Therefore, we must keep calm and invest prudently in avoiding unnecessary losses in the expansion of aluminum processing capacity.
China is a big country in the aluminum industry and has already occupied the first place in the aluminum industry in many countries. However, the excessive growth of production capacity has also highlighted the problem of excess. In recent years, electrolytic aluminum with serious excess production capacity has experienced a decline in the capacity utilization rate of the industry and companies have suffered losses. This excess trend was also passed to the downstream aluminum processing industry. Although experts repeatedly called for vigilance over overheated and overcapacity in some areas of aluminum processing two or three years ago, the enthusiasm of investors remains unabated. From January to October this year, China's non-ferrous metals industry completed a total investment of 210.9 billion yuan in fixed assets, an increase of 16.73% over the same period of last year, of which non-ferrous metal processing completed fixed assets investment of 70.6 billion yuan, an increase of 31.6% over the same period last year, higher than the entire non-ferrous industry The growth rate of investment was 14.98 percentage points, accounting for 33.48% of the chromochrome industry, an increase of 3.79 percentage points over the same period of last year. This fully shows that the current aluminum processing industry is still favored by all walks of life.
“The investment in aluminum processing industry has not stopped, and the financial crisis has caused some companies, especially some local governments, to buck the trend and invest heavily in aluminum processing. Because some people do not know enough about the current situation of aluminum processing in China, there have been some rashes. There are many projects currently under construction and planned. The preliminary statistics include 10 casting and rolling projects, 16 hot rolling projects, 38 cold rolling projects, and 15 national projects. These investment fevers will certainly bring about more intense The competition.†Dong Chunming, general manager of Shanglite Metal Information Consulting (Beijing) Co., Ltd., also expressed concern over overheated investment in aluminum processing.
The figures cited by Pan Jiazhu illustrate the overheated development in some areas of aluminum processing in the past two years. “In 2006, there were only two 1+4 production lines for aluminum sheet hot strip rolling in China. Now there are 1+2, 1+3, 1+4, and 1+5, including those under construction. A total of eight hot strip rolling production lines, if analyzed by the production of cans, including several production lines such as Nanshan, can meet domestic needs completely after normal production, and can be exported in small quantities, including other ingot production lines. According to the calculations, China will have a total production capacity of 5.4 million tons by the end of next year, surpassing the United States, ranking first in the world, and will be able to meet domestic demand in the next 10 years. In addition, in 2006, there were already 10 ultra-wide foil rolling mills under construction. 13 units, now totaling 26 units, accounting for 72% of the world total, China's aluminum foil output reached 1.32 million tons in 2008, far more than the United States and Europe.Since 2004, China has become a net exporter of aluminum foil, but domestically for the aluminum foil industry The investment is still increasing, there are still many new projects, and companies are expanding.The third large-scale extrusion machine has 9 production lines in 2006 and 10 under construction. Now China has large-scale extrusion. 30 machines, of which more than 800 There are 8 heavy-duty extruders of 0 tons, almost all of which are used in the production of transportation industry.The production capacity of aluminum extrusion materials is expected to reach 117,500 tons next year and 370,000 tons in 2015. Industry experts estimate that by 2014, The average annual total demand for extruded aluminum used in rail vehicles in China is only 670,000 tons, and the centralized construction of China’s railways and subways will be completed by 2015. After 2015, the market sales will be reduced for vehicles. Demand, the investment and construction of the railway will decline."
"But the surplus is not absolutely a bad thing. Moderate excess is needed." Pan Jiazhu also pointed out that it is necessary to correctly understand the problem of overcapacity. It is precisely because there is excess, only the survival of the fittest. “With adequate excess capacity, we can guarantee the normal supply of downstream industries; and, the new production capacity that causes excess capacity should be advanced, and a modest surplus of production capacity can promote the withdrawal of backward production capacity; in addition, there is still a time ahead for excess capacity. The problem was that the excess at the time did not mean that it would still be surplus in the following years; finally, whether or not the production capacity was surplus could not only consider the domestic market. When China's technical products have reached the international advanced level, they can join the international market,†he said.
Despite this, the development of excess trends still deserves our vigilance. Because serious excess production capacity not only brings disorderly competition and idle resources, but also the large amount of exports brought by surplus production capacity can easily cause trade friction and encounter anti-dumping. Since the beginning of this year, China has encountered a number of anti-dumping incidents, which have brought great influence on the industry and enterprises. Therefore, we must keep calm and invest prudently in avoiding unnecessary losses in the expansion of aluminum processing capacity.