2020 Aluminum Industry Review | Rising Corporate Profits, Formation of Alumina Production Capacity Ceiling, Over 3.3 Million Tons of Recycled Aluminum Under Construction and Production

In 2020, China's aluminum industry, following supply-side structural reforms, withstood multiple tests, including the epidemic and trade frictions. Under the new development paradigm of prioritizing domestic circulation and promoting mutual growth between domestic and international circulation, the aluminum industry showed an overall positive trend, achieving remarkable achievements. Whether in upstream or downstream industries, the profitability of enterprises has gradually improved, exhibiting a favorable trend of cost reduction and profit increase; the price of primary aluminum increased from 12,000 yuan/ton at the beginning of the year to 16,000 yuan/ton at the end of the year, and the characteristics of dual increases in industry supply and demand gradually emerged. The global aluminum market also showed an overall trend of strength in China and weakness abroad. This article reviews the achievements, industrial changes, and newly built and under-construction projects of the upstream and downstream industries of the aluminum industry since 2020. It is hoped that China's aluminum industry can continue to move forward along the path of high-quality development, further stimulate industrial vitality under the new dual-circulation development pattern, seize industrial opportunities, and create more new situations and Achievements in industrial development! Upstream Industry Delivers Excellent Results Amidst the dual challenges of the COVID-19 epidemic and the impact of globalization, in the year 2020, China's upstream aluminum industry exhibited four major changing trends: a shift to primarily overseas aluminum ore supply; disorderly investment in alumina leading to weakened competitiveness; relocation of primary aluminum production to areas with clean energy; and the strong development of recycled aluminum becoming a future trend. These four changes present both positive and negative aspects, but the overall development trend of the industry is positive. In particular, the optimization of the industrial structure, energy conservation and environmental protection, technological advancements, and comprehensive competitiveness have all shown remarkable results. Aluminum Ore: Significant Increase in Prospective Resources, Steady Rise in Imports According to relevant statistics, from January to October 2020, China imported 96.04 million tons of bauxite, a year-on-year increase of 13.6%, with an estimated annual import volume of approximately 110 million tons; domestic bauxite production was 36.1 million tons, a year-on-year decrease of 23.42%. In the first nine months of 2020, China's cumulative bauxite imports reached 88.03 million tons, a year-on-year increase of 12.7%, and the import volume is expected to reach 114 million tons in 2020, a year-on-year increase of 13.2%. China's main bauxite imports come from sixteen or seventeen countries, including Guinea, Australia, Indonesia, and Brazil. Imports from Guinea will increase year by year in the future. Bauxite Imports and Aluminum Production Start-up Situation in 2020: In the first three months, Shandong Binzhou Ta'erhe Port Area completed the import of 9.695 million tons of Weqiao bauxite, a year-on-year increase of 41.2%, setting a new record for quarterly imports; Xingxian Yangjiagou bauxite mine of Shanxi Aluminum Industry Co., Ltd. commenced operations. In April, the 23-kilometer belt conveyor system of the Chalco Guinea Boffa bauxite project successfully completed its joint commissioning and testing, marking the completion and operation of China's largest bauxite project investment in Guinea. In May, the Guangxi Natural Resources Department conducted a field acceptance of the "Geological Survey Project of Sedimentary Aluminum Ore in Jingxi-Tianyang Area, Guangxi," predicting prospective resources of 249 million tons; overseas aluminum ore resources are also expanding rapidly. The Chalco Guinea Boffa bauxite project has proven reserves of approximately 1.75 billion tons, which can sustain mining for 60 years; the Port of Abidjan (PAA) exported 20,000 tons of bauxite to China for the first time; neighboring Guinea, Côte d'Ivoire, also began shipping bauxite to China, indicating further diversification of importing countries. In June, the groundbreaking ceremony for the large-scale detailed exploration project of Guizhou Zheng'an Danping bauxite mine was held, with estimated bauxite resources exceeding 100 million tons, reaching the scale of an ultra-large deposit. By December, there were approximately 14 Chinese companies Enter Guinea to mine and negotiate bauxite development, more than double the total number of about 7 companies from other countries in the world. Alumina: Capacity Nears 90 Million Tons, Forming a "Ceiling" According to statistics, as of December 2020, China's alumina production capacity reached 89.15 million tons/year, operating capacity was 73 million tons/year, and the operating rate was 82%; the corresponding figures for the same period in 2019 were 87.15 million tons/year, 71.55 million tons/year, and 82%, respectively. The contradiction of alumina overcapacity in 2020 became prominent. From January to October 2020, China's cumulative alumina imports totaled 3.148 million tons, a year-on-year increase of 205%, and cumulative exports totaled 140,000 tons; domestic alumina net consumption was 74.52 million tons. 2020 Alumina New Capacity Commissioning Progress: The 1 million tons/year alumina capacity of State Power Investment Zhengdao was officially put into operation in April and produced its first batch of products in June; the Phase I 1 million tons/year capacity of Guangxi Huasheng Aluminum Co., Ltd. reached full production in October, and the Phase II 1 million tons/year capacity was put into operation in November; the 1 million tons/year alumina capacity of Weqiao Aluminum Electric Co., Ltd. Zhanhua Company was put into operation in September. In addition, due to the impact of the epidemic, since March, production lines that had been shut down or reduced production gradually resumed production from September. Dongfang Hope Sanmenxia Aluminum Co., Ltd. resumed full production, and State Power Investment Shanxi Aluminum Co., Ltd. also resumed full production, with a total resumption of 1 million tons/year. According to statistics, in 2020, China added 4.3 million tons/year of alumina capacity, all located in Guangxi and Guizhou. 2020 Alumina Projects Under Construction: The 2.4 million-ton alumina project in Zheng'an County, Guizhou, is under construction; the 2.5 million-ton alumina project of Xinjiang Shihezi Tianshan Aluminum Co., Ltd.'s Guangxi factory, with a later phase of 1.7 million tons under construction, is expected to be put into operation in 2021; the State Power Investment Group Guizhou Zunyi Industrial Development Alumina Project started production; the annual production of 60,000 tons of fine alumina project of Zouping Sheng Aoyu Ding Aluminum-based New Materials Co., Ltd. was successfully ignited; Shandong Dongheng Guofian New Materials Co., Ltd.'s high-performance alumina fiber project was put into production, with a fiber production capacity of 1,000 tons/year; Shanghai Rongrong New Materials Technology Co., Ltd.'s annual production of 300 tons of new alumina continuous fiber industrialization project started construction (alumina continuous fiber is a high-end material, widely used in the manufacturing of aerospace engines, semiconductor sintering furnace chambers, and large-scale structural supporting frames); the Shandong low-sodium microcrystalline new material project of Chalco passed the feasibility study review, successfully entering the pre-construction approval and design preparation stage. Primary Aluminum: Energy Conservation and Environmental Protection in Full Swing, Accelerated Relocation of Enterprises Under the guidance of national energy conservation and environmental protection policies, the primary aluminum industry is accelerating its relocation to Honghe and Wenshan Prefecture in Yunnan, Guangyuan in Sichuan, and Baise in Guangxi. It is expected that by 2025, Yunnan Province's primary aluminum production capacity will exceed 7.7 million tons/year, making it the largest aluminum-producing province in China. Among them, the first phase, Section 1, of the Guangyuan Zhongfu Green Hydropower Aluminum Materials project, with 118 cells, was put into operation in November 2019, with a capacity of 250,000 tons/year; in December 2019, Yunnan Shenhuo's 900,000 tons/year green hydropower aluminum materials integrated project, Phase I, Section 1, with a capacity of 150,000 tons/year, was put into operation, and by August 2020, the operating capacity had reached 450,000 tons/year. The construction of Phase II was completed at the end of September, forming a capacity of 900,000 tons/year; in December 2019, Weqiao Group laid the foundation stone for the Yunnan Green Aluminum Innovation Industrial Park and the 2 million tons/year hydropower aluminum project, and established Yunnan Hongtai New Materials Co., Ltd. Construction began with an unprecedented "lightning speed" in the aluminum industry worldwide. In September 2020, the first batch of electrolytic cells were put into operation. Subsequently, the Yunlv Heqing Yixin Aluminum Phase II 210,000 tons/year electrolytic aluminum project was put into operation in January 2020; Yunnan Wenshan Aluminum Co., Ltd.'s Matang Phase I 500,000-ton hydropower aluminum project entered the production and commissioning phase in May 2020 and achieved full-load production in September. In 2020, breakthroughs were achieved in supporting technologies and processes for electrolytic aluminum. Among them, the second-generation bottom inspection robot developed by CITIC Heavy Industry Kaicheng Intelligent Equipment Co., Ltd. was officially put into use in June, achieving good results. The robot can complete temperature measurement and data reporting of multiple electrolytic cells in a short time, not only improving inspection efficiency but also ensuring data security and accuracy; Dongxing Aluminum successfully started electrolysis with electrolyte replacing cryolite, conducting experimental research on electrolyte replacing cryolite startup for 500kA all-graphite cathode electrolytic cells, achieving success and promoting application; Zhengzhou Light Metallurgy Technology, Zhengzhou Zhongshi Sail Technology, and Chongqing Tiantai Aluminum jointly made new breakthroughs in nonlinear roasting technology and complete sets of equipment for electrolytic aluminum cells. The overall technology of the project has reached international standards, which can prolong the cell lifespan and significantly improve energy conservation and emission reduction; the portable pre-cell overheating real-time measuring instrument developed by Beijing Core Power Technology Co., Ltd. entered the market in August and was hailed as an energy-saving artifact for electrolytic aluminum, potentially saving electrolytic aluminum plants nearly 10 million yuan in annual costs; in July, Wencan Aluminum completed the construction of a 30,000 tons/year aluminum dross resource utilization production line. Every ton of primary aluminum extracted can produce 10-13 kg of aluminum dross. This production line can process 30,000 tons of aluminum dross per year, increasing alumina production by approximately 20,000 tons/year, eliminating 1,000 tons of organic matter in the alumina system, and producing nearly 3 million cubic meters of hydrogen as a byproduct, marking the Entry of Chinese aluminum dross treatment into a new stage of harmless resource recycling. High-Purity Aluminum: Under-Construction Capacity of 100,000 Tons/Year, Setting a New Record High-purity aluminum and its products, due to their excellent corrosion resistance, plasticity, conductivity, reflectivity, and non-toxicity, are widely used in electrolytic capacitors, mirror decorative panels, storage disks, semiconductor products, tobacco, food packaging, military, and aerospace industries. Since 2020, driven by the growth of related application needs, the under-construction capacity of high-purity aluminum has achieved a breakthrough, setting a new record high. Projects under construction include: the 60,000-ton ultra-high-purity aluminum project of Xinjiang Tianshan Aluminum's Tianzhan New Materials; the construction of a new 10,000-ton refined aluminum production line by Baotou Aluminum (Group) Co., Ltd., bringing the total refined aluminum production capacity of Baotou Aluminum to 50,000 tons/year, making it currently the world's largest single high-purity aluminum producer; the Pingguo Aluminum "refined aluminum preparation technology research and its application" scientific research project, this technology can directly extract 99.86% refined aluminum using Pingguo Aluminum's 76 500kA electrolytic cells; the 2,000 tons/year electronic-grade ultra-high-purity aluminum and 30,000 tons/year high-quality aluminum alloy industrialization project of Ningbo Jinyue New Materials Co., Ltd. started construction in Chaiqiao Street. Recycled Aluminum: Under-Construction and Newly Commissioned Capacity Exceeds 3.3 Million Tons/Year China's recycled aluminum industry started relatively late. However, in recent years, with the rapid development of China's aluminum industry, the recycled aluminum industry has gradually formed scale, with a large number of outstanding enterprises emerging and rapidly developing. 2020 Recycled Aluminum New Projects: In March, Zhejiang Xinyue Holding Group Co., Ltd. signed an investment of 2 billion yuan to build a 200,000 tons/year recycled aluminum project in Jiangxi Guixi City; the 320,000 tons/year comprehensive utilization project of solid waste in cooperation with the Chenguang Environmental Science and Technology Co., Ltd. and the US Sunlight Development Group Co., Ltd. in the Xingxian Economic and Technological Development Zone of Shanxi Luliang, with a total investment of 1.08 billion yuan, will be built in three phases and is expected to reach production capacity in 42 months. Also, the Ф9.5mm continuous casting and rolling line project of 50,000 tons, with a total investment of 120 million yuan, is planned to be completed in December 2020. In April, the construction of the Fujian Jianle Huangyuan Recycled Aluminum project started, with a total construction area of 158,000 square meters, a recycled aluminum production capacity of 200,000 tons/year, an annual output value of 2.1 billion yuan, and construction in two phases; Jiangsu Hongshun Aluminum's 200,000 tons/year recycled aluminum project obtained provincial approval, with a planned investment of 200 million yuan and construction in two phases. In May, a 100,000 tons/year recycled aluminum project started construction in Yunxian Industrial Park, Yunnan Province, and is planned to be completed and put into operation in 2021; Jiayuan Aluminum's Phase II project, with an annual output of 100,000 tons of recycled alloy ingots, 50,000 tons of industrial aluminum alloy materials, and 200,000 sets of precision-processed aluminum alloy series products, settled in Suixi Development Zone, with a total investment of 250 million yuan. In June, the "Gongyi Xin Ge Nonferrous Metals Annual Production of 200,000 Tons Recycled Aluminum Water Project and Gongyi Xin Ge New Materials 100,000 Tons Aluminum Processing Recycling Utilization Project," introduced by Yulian Group, started construction. This project is built in three phases and is expected to generate annual revenue of 2.6 billion yuan after reaching full production capacity; in October, Shanghai Rige Metal New Materials used 270 acres of idle factory buildings in Shanxi Wenxi County to invest 500 million yuan in the construction of a 300,000-ton recycled aluminum project. The total construction period is two years, with projects including 300,000 tons of recycled aluminum alloy ingots (liquid), 50,000 tons of high-performance magnesium alloy ingots, 20,000 tons of aluminum alloy round ingots, 20,000 tons of magnesium alloy round ingots, 20,000 tons of aluminum alloy intermediate alloys, with a supporting 300,000-ton aluminum alloy die-casting production line, an annual output value of approximately 5.41 billion yuan, and employment for over 1,500 people. The Phase I recycled aluminum production capacity of 100,000 tons will be put into operation in April 2021. 2020 Newly Commissioned Recycled Aluminum Projects: Xin Ge Group's Zouping 300,000 tons/year recycled aluminum project was gradually put into operation in January 2020, with a total investment of 600 million yuan. Utilizing the existing workshops of Weqiao Chuangye Group, the project was implemented in three phases. After completion, it will form an annual production capacity of 150,000 tons of 3104 alloy aluminum water and 150,000 tons of 6063 alloy aluminum water, while also having the capacity to process 100,000 tons of secondary aluminum dross; the 100,000 tons/year recycled aluminum deep processing project of Meijia Nonferrous Metals Co., Ltd. in Gutian County, Fujian Province, was completed and put into operation on May 24; the Phase I of the Luoyang Xi Ge Electric Automation Co., Ltd.'s 300,000 tons/year recycled aluminum project was put into operation at the end of August, and Phase II is planned for completion in December 2022; the Phase I of Hubei Shunbo Alloy Co., Ltd.'s 200,000 tons/year recycled aluminum alloy project, with a capacity of 50,000 tons/year, started operating in October, and the remaining 50,000 tons/year will be put into operation in the first quarter of 2021; at the end of October, Yunnan Zhongli Aluminum Co., Ltd.'s 100,000 tons/year recycled aluminum project settled in the Dongchuan Re-employment Characteristic Industry Park, covering 16 acres, with a planned investment of 150 million yuan, and is expected to be put into operation in December 2021. Carbon: Production Capacity Continues to Expand, Operating Rate Declines Currently, domestic carbon manufacturers are mainly concentrated in Shanxi, Henan, Guizhou, and Yunnan, with a high degree of industrial concentration. Since this year, the newly built production capacity of the carbon industry has continued to expand, but the operating rate has shown a downward trend. 2020 New Production Capacity: In March, the Phase I automated production line of Yunlv Haixin anode assembly was put into operation, which can meet the annual demand for 500,000 tons of primary aluminum anode carbon blocks; in April, Yunlv Yuanshin Aluminum Co., Ltd.'s 160,000 tons/year anode carbon Phase II was put into operation; in May, Shanxi Yuancheng Shanxi New Materials Co., Ltd.'s 280,000 tons/year carbon tapping potential and efficiency-enhancing project passed environmental protection acceptance; in August, Chongqing Jinqi Carbon Co., Ltd.'s 160,000 tons/year carbon project was ignited and put into operation; Tianshan Aluminum Co., Ltd.'s South Xinjiang Alar 300,000-ton pre-baked anode project was ignited and put into operation; Luxing Carbon's pre-baked production line with a total scale of 600,000 tons, with the front-end 150,000-ton pre-baked anode, started construction, and is expected to be ignited in June 2021. Downstream Industry Achieves Outstanding Results China's aluminum industry has a complete industrial chain, with a full range of products and complete supporting facilities. In particular, during its rapid development in recent years, the aluminum processing industry has shown a cluster-type development model, further reducing overall costs and gradually enhancing industrial international competitiveness. In 2020, with the outbreak of the epidemic and the intensification of trade frictions, the aluminum processing industry faced unprecedented challenges, but the industry as a whole remained strong and formed a good development trend. According to statistics, the total output of aluminum materials in 2020 will reach 35.8 million tons, a year-on-year increase of 2%. Among them, strip materials account for approximately 30%, extrusion materials account for approximately 45% (including tubes and rods), aluminum foil accounts for approximately 12%, wire accounts for approximately 8%, and others account for approximately 5%. From January to October 2020, China's cumulative aluminum material exports reached 3.781 million tons, a year-on-year decrease of 11.9%. Among them, strip material exports were 1.923 million tons, a year-on-year decrease of 12.7%; extrusion material exports were 804,000 tons, a year-on-year decrease of 17.1%; aluminum foil exports were 1.023 million tons, a year-on-year decrease of 5.5%; cumulative exports of aluminum products were 1.983 million tons, a slight year-on-year increase of 0.8%; cumulative imports were 35,000 tons, a year-on-year decrease of 7.6%. It should be pointed out that this data is lower than the relevant data from relevant departments. Strip: Investment in Newly Commissioned and Under-Construction Projects Nears 20 Billion Yuan China's aluminum strip industry is the largest in the world. Among them, ordinary aluminum alloy strip materials have already secured a position in the global market with their comprehensive advantages, forming strong international competitiveness. Since 2020, the aluminum alloy strip material industry has developed rapidly and is gradually moving towards high-end production. In the field of high-end aluminum materials, the gap between China's industry and developed countries is gradually narrowing. With the continuous strengthening of China's manufacturing capabilities and the continuous improvement of equipment localization rates, there were many new aluminum alloy strip material projects in 2020. These include: In July, the last batch of aluminum strip double-roll casting and rolling lines of Jiuquan Iron and Steel Co., Ltd., the world's largest, were put into operation. All 60 production lines of the company have been put into operation, with a total billet production capacity of 600,000 tons/year; Baosteel Packaging built a new intelligent aluminum can production line in Lanzhou, with a total investment of 400 million yuan, covering 100 acres, and a capacity of 800 million cans/year. The line is expected to be put into operation in March 2021; the 30-ton casting production line of Sanmenxia Baowu Aluminum's melting workshop was put into operation, and is expected to reach its designed capacity in January 2021, with a finished product rate of 91%. In August, Yulian Group added one cold rolling mill and started installation. The products are can body materials, can lid materials, and aluminum foil billets; Nanshan Aluminum Processing's 6016 aluminum alloy car engine hood outer panels and car door inner panels project entered mass production, with the former supplying XPeng Motors' P7 model and the latter supplying Hyundai Genesis. In September, the Chongqing Jiulong Wanbo Special Aluminum New Materials project started construction, with a total investment of 7.5 billion yuan, and is planned to be put into operation in December 2021; Wanji Holding Group's annual production of 120,000 tons of high-end double-zero foil casting and rolling billets started construction, with an investment of 450 million yuan, covering 93 acres, with 10 casting and rolling lines. The project is expected to be put into operation in 2021, with an annual sales revenue of 1.8 billion yuan; in October, Phase I of the annual production of 100,000 tons of aluminum-based alloy material strip production line in Guizhou Xingren City was put into operation, with a Phase I investment of 180 million yuan, forming a production capacity of 60,000 tons/year; the Debo County DEDE Company's annual production of 200,000 tons of special high-end aluminum processing project is under construction in the Maiai Aluminum Industrial Park in Debo County, with main products including high-precision round ingots, aluminum rods, and aluminum plates and other high-end special aluminum alloys, with an output value of 3 billion yuan; in November, the first aluminum profile roller hearth furnace production line in China was successfully tested at Nanshan Aluminum Processing. The first domestically produced large-scale high-end high-precision aluminum alloy thin plate air cushion furnace has been completed in detailed design and entered the manufacturing stage, and is planned to be put into operation in 2021. In December, Baowu Aluminum's 300,000 tons/year Phase I high-precision aluminum strip project was fully put into operation, with an investment of nearly 7 billion yuan, covering 790 acres, with a designed production capacity of 80,000 tons/year of aluminum alloy automotive sheets, 50,000 tons/year of aluminum alloy medium and thick plates, and 170,000 tons/year of aluminum alloy strip materials. Aluminum Foil: Under-Construction High-End Aluminum Foil Capacity Creates a Historical Record In recent years, China's aluminum foil industry has developed into a global trend, with the largest scale, globally leading technology and processes, and an overall industrial development level comparable to that of developed countries. It is particularly noteworthy that China's aluminum foil production technology using cast and rolled billets is globally leading, and it is currently the only country in the world that can produce wide-width aluminum foil exceeding 1.1 meters and ultra-thin capacitor foil with a thickness of 0.004 millimeters. In 2020, the aluminum foil industry developed steadily, with a strong competitive advantage worldwide and strong export capabilities. In 2020, the aluminum foil industry added a production capacity of 1.65 million tons/year, setting a record high. New projects include: China's first automated chemical foil production line appeared in Xinjiang Zhonghe Digital New Materials Industrial Park, fully realizing full-process data monitoring, intelligent operation, intelligent production, and intelligent warehousing of the production line. Compared with the traditional chemical foil production method, the new line's production process automation reaches 90%, the data acquisition rate reaches 99%, and the production capacity is increased by 30%, etc.; Wanshun New Materials Co., Ltd. will invest in an annual production of 72,000 tons of high-precision electronic aluminum foil production project; the first rolling mill R32 of Ruyuan Dongyang Youai Xi Jie Jingfoil Co., Ltd.'s "annual production of 40,000 tons of high-precision aluminum foil new material project" has been installed. The total investment of the project is 600 million yuan. After completion, the company's aluminum plate, strip, and foil production capacity will reach 150,000 tons/year, with an increase in output value exceeding 1 billion yuan/year. The products will fill the gap in domestic products of this type and solve the current situation of China's high-end battery foil imports; Shenhuo Aluminum Foil's 105,000 tons/year high-end double-zero foil project was put into operation, with products positioned as high-end double-zero foil, electronic foil, and pharmaceutical foil. Over 70% of the products are supplied to the high-end market, and the main production equipment includes six foil rolling mills, eight rewinding machines, and two working roll grinders imported from Germany. This is the largest aluminum foil production enterprise in the Chinese aluminum foil industry with the largest number of imported equipment and one-time construction; the 500 million yuan electronic aluminum foil project was signed in Xinjiang's Seventh Division, Hu Yanghe City. The investor is Guangxi Hezhou City Guiding Electronic Technology Co., Ltd., which will build 100 electronic foil production lines in two phases, with Phase I put into operation in June 2021; the construction agreement for the Anhui Zongyang County Jinyu Aluminum-based New Materials Industry project was signed. The total investment is 2.1 billion yuan, with a construction area of 92,100 square meters. After full completion and reaching production capacity, it will add a production capacity of 190,000 tons/year of various aluminum foils; Phase I of the Lanzhou New Area Aluminum Co., Ltd.'s 50,000 tons/year aluminum foil project's first rolling mill will be put into operation in September 2021; Phase I of the Lanzhou New Area Business Investment Group's 200,000 tons/year aluminum foil project, with a capacity of 50,000 tons/year, has signed a contract with Zhongse Technology Co., Ltd. for the purchase of equipment. Extrusion: More Than 20 New Commissioned Projects China's aluminum extrusion materials have extremely strong international competitiveness, with more than 127 large extrusion presses exceeding 45MN, unique globally, able to provide the most complete range of products and the most advanced technological processes worldwide. Based on China's current highly competitive industry, in 2020, China added more than 20 new commissioning projects for aluminum extrusion materials, further laying the foundation for China's globally leading aluminum extrusion material production and processing capabilities. Newly commissioned projects include: the Qinghai Haiyuan Aluminum Industry New Materials Co., Ltd.'s 50,000 tons/year wire project; Chalco Sapa Special Aluminum Materials (Chongqing) Co., Ltd.'s 40MN high-end aluminum alloy intelligent production line project; the Guizhou Liupanshui City Shuicheng Economic Development Zone Jiu Heng Aluminum Industry Co., Ltd.'s 30,000 tons/year building energy-saving profiles and industrial profiles project; Northwest Aluminum Processing Co., Ltd.'s 8MN forging machine project; Baise Rainbow Aluminum Industry Co., Ltd.'s annual production of 100,000 tons of large-section aluminum alloy profiles and high-precision rod materials project; Guangxi Laibin Yinhai Aluminum Alloy Processing Co., Ltd.'s Phase I 300,000 tons/year aluminum round ingots project; Shandong Xingchen Aluminum Industry Technology Co., Ltd.'s XCNM nano-aluminum materials 300,000 tons/year project; Shandong Innovation Metal Co., Ltd.'s Phase I 800,000 tons of high-strength high-toughness aluminum alloy round ingot casting project, with a total of seven production lines; Guizhou Shun Tai Aluminum New Materials Co., Ltd.'s Phase I annual production of 60,000 tons of aluminum profiles and deep processing products project. 2020 Aluminum Extrusion Projects Under Construction: The Tongchuan Dongjiahe Circular Economy Industrial Park's 80,000 tons/year aluminum alloy wire project started construction, with a total investment of 320 million yuan, producing Series 1 to Series 8 aluminum alloy wires used in the manufacturing of cables, rivets, welding rods, etc.; Fujian Fen'an Aluminum Industry signed a contract for a 200,000 tons/year new aluminum profile project in Hejiang, Sichuan, with construction in two phases, with Phase I at 120,000 tons/year; the largest aluminum alloy processing material project under construction—the Daqing Yugang Longquan aluminum alloy processing material project; Baoji Longhengda Aluminum Industry Co., Ltd.'s annual production of 50,000 tons of new aluminum profile project started construction, planning 10 extrusion lines from 6MN to 26MN, with commissioning in December 2021; Hunan Yueyang Shenglu Chenbo Aluminum Industry Co., Ltd.'s continued construction of a 30,000 tons/year building aluminum profile and 5G communication base material project, with construction in two phases, with Phase I having a total construction area of 41,600 square meters; Huajian Aluminum's No. 5 Factory high-performance special aluminum material project started construction, with a total investment of 1.6 billion yuan, adding new deep processing production lines, a fully automatic surface treatment center, and an intelligent packaging and warehousing system, etc., with a production capacity of 150,000 tons/year; Yaton Technology Co., Ltd. signed a contract with Haian Economic and Technological Development Zone to invest 600 million yuan in an aluminum alloy extrusion product project; Hunan Huhao New Materials Co., Ltd. laid the foundation stone for an aluminum round ingot, aluminum profile, and industrial aluminum profile precision processing project, with a total investment of 300 million yuan; Weqiao Chuangye Group and Jiangsu Lide Aluminum Industry Co., Ltd. signed a contract for an annual production of 320,000 tons of new energy solar power station aluminum alloy materials project; the Xuancheng Economic and Technological Development Zone Huilong Aluminum Industry Co., Ltd.'s 100,000 tons/year aluminum profile project started construction, and is planned to be put into operation in August 2021; Shaanxi Liangding Rui's annual production of 80,000 tons of new special aluminum wire project is under construction, and will be put into operation at the beginning of 2021. Deep Processing: Nearly 30 Projects Under Construction and Commissioned The aluminum deep processing field in 2020 was full of surprises, with nearly 30 projects under construction and commissioned, an unprecedented scale, mainly led by major aluminum industry enterprises such as Chalco, Baosteel, Weqiao, and Zhongwang. Briefly listed as follows: Chalco Qilu Industrial Park's aluminum-based new materials Phase II was included in the list of major provincial construction projects in 2020, with a total investment of 5.1 billion yuan, producing 850,000 tons/year of aluminum-based new materials series products. After completion, the estimated annual revenue is expected to reach 7.2 billion yuan; Weqiao's lightweight base is building a full-process automobile research and development and manufacturing base. Three projects were started in January 2020, namely the Guangzhou Hede annual production of 17 million lightweight structural parts, Suzhou Aojie's annual production of 500,000 all-aluminum car bodies, and the Weqiao lightweight pilot base. The total investment of the three projects is 2.5 billion yuan, of which the Hede project is 1.7 billion yuan, with 25 sets of extrusion and casting machines. Phase I was put into operation in October 2020. After reaching full production capacity, the demand for aluminum melt will be approximately 45,000 tons/year; Zhongwang Group accelerated the construction of Henan Zhongwang Aluminum Alloy Deep Processing Components Co., Ltd.'s annual production of 1 million tons of high-precision aluminum deep processing components project in Liaoning Zhongwang Group; Sitong New Materials Co., Ltd. built a new 5G communication equipment special lightweight aluminum alloy material project in Baoying County, Yangzhou City; Phase I of Guangxi Ping Aluminum Group Zhongqiang Aluminum Industry Technology Co., Ltd.'s project was put into operation, with an annual production capacity of 5 million square meters of templates and 100,000 aluminum car bodies. The factory is located in Guigang City's industrial park, with a total investment of 3.5 billion yuan, and Phase II is under construction; China Academy of Launch Vehicle Technology announced to the public in November 2020: The 703 Institute led the joint development of China's first overall formed "3.35-meter aluminum-lithium alloy fuel tank bottom," and is currently trial-producing a "5-meter aluminum-lithium alloy tank bottom." Currently, only China, the United States, Japan, and Europe have mastered this technology.
[Reprinted with source retained - Shanghai Metal Market] 2020 Aluminum Industry Review | Corporate profits rise, alumina production capacity ceiling formed, and over 3.3 million tons of recycled aluminum capacity under construction and put into production