Electrolytic aluminum is an extremely important industrial raw material. Aluminum and aluminum alloy are widely applied in many industries including construction, electronics and electric power, transportation, durable goods and packaging.
According to CRI, China is the world’s largest electrolytic aluminum producer with output volume accounting for over half of the world’s, and it has remained rapid growing in these years. The CAGR of China’s electrolytic aluminum output volume was 13.2% during 2006-2016 while that of other regions in the world declined slightly in the same period. China’s output volume of electrolytic aluminum was 31.873 million tons in 2016, up by 1.3% YOY.
Annual import and export volume of electrolytic aluminum is quite low, which can be ignored compared to the domestic output volume. Terminal consumption of electrolytic aluminum is mainly centralized in construction & real estate, electronic & electric power and transportation while other industries such as machinery manufacturing and packaging also consume aluminum.
The cost of producing electrolytic aluminum mainly includes electrolytic aluminum, electric power, carbon anode, fluoride salt, labor cost, manufacturing cost and depreciation expense, of which electrolytic aluminum and electric power cost most, together accounting for 60-70%. In addition, freight influences the prices of aluminum greatly in market circulation.
As one of the core factors influencing market competition of electrolytic aluminum industry, electric prices have great impact on enterprises’ competitiveness. Apart from that, electrolytic aluminum industry is a large consumer of electric power, the cost of which accounts for about 30-40% of the total cost. Quite a few electrolytic aluminum enterprises build their own power plants (most are using thermal power) in order to reduce cost, causing serious environmental pollution.
CRI analyzed that overcapacity issue was serious in China’s electrolytic aluminum industry in the past few years. Aluminum prices has declined since May, 2011, and it almost dropped by half until November, 2015. Overcapacity was not mitigated though China’s aluminum prices rebounded slightly later. Electrolytic aluminum industry is an energy-intensive sector with low barriers to entry and large consumption of electric power. What’s more, part of the electrolytic aluminum enterprises build private power plants which are mainly using thermal power, and these enterprises are characterized by extensive management and cause environmental pollutions easily..
China’s electrolytic aluminum capacity exceeded 44 million tons by the end of the first half of 2017, the growth rate of which is clearly higher than that of demand, showing the further exacerbation of overcapacity.
The Chinese government formulated some policies to control the blind expansion of aluminum industry while the effect was little. In April, 2015, the Ministry of Industry and Information Technology of PRC issued further plan of capacity replacement and require to eliminate outdated capacity so as to bring new capacity. However, during 2015 and 2016 when the policies were implemented, the national electrolytic aluminum capacity surged by over 10 million tons. Policies must be enforced to eliminate overcapacity for the effect was far bellow expectation.
The State Council of China released “Catalogue of Investment Projects Approved by the Government (2016)” and emphasized again that elimination of capacity need to be carried out in industries with serious overcapacity issues including electrolytic aluminum industry, and also declared that any department cannot file projects involving new capacity in the name of anything or in any way. Under the situation of reducing capacity and stock, the policy can not only eliminate outdated capacity, but also limit growth of the new.
CRI estimates that growth rate of China’s economy will remain above 6% during 2017-2021, the urbanization level will keep rising, real estate industry will keep developing and other industries like electric power, transportation, packaging, electronic and consumer goods will be also in a growing trend, which all will promote China’s electrolytic aluminum industry.
Readers can acquire the following information or more through this report:
-Economic and Policy Environment Faced by China’s Electrolytic Aluminum Industry
-Analysis on Capacity and Output Volume of China’s Electrolytic Aluminum Industry
-Analysis on Demands for Electrolytic Aluminum in China
-Analysis on Competition in China’s Electrolytic Aluminum Market
-Analysis on Major Electrolytic Aluminum Producers in China
-Market Opportunities and Driving Forces in China’s Electrolytic Aluminum Industry, 2017-2021
-Threats and Challenges Faced by China’s Electrolytic Aluminum Industry, 2017-2021
-Analysis on Demand of China’s Electrolytic Aluminum Industry, 2017-2021
Table of Contents
1 Concepts in Electrolytic Aluminum Industry
1.1 Definition of Electrolytic Aluminum
1.2 Research Methods of the Report
1.2.1 Parameters and Assumptions
1.2.2 Data Sources
1.3 About CRI
2 Analysis on China’s Electrolytic Aluminum Industry, 2016-2017
2.1 Development Environment of China’s Electrolytic Aluminum Industry
2.1.1 Economic Environment
2.1.2 Policy Environment
2.1.3 Social Environment
2.2 Analysis on Supply of Electrolytic Aluminum in China
2.3 Analysis on Market Demands for Electrolytic Aluminum in China
2.3.1 Major Consumers of China’s Electrolytic Aluminum Market
2.3.2 Market Scale of China’s Electrolytic Aluminum Industry
3 Competition Status of China’s Electrolytic Aluminum Industry, 2016-2017
3.1 Barriers to Entry in China’s Electrolytic Aluminum Industry
3.1.1 Brand Barrier
3.1.2 Policy Barrier
3.1.3 Barrier of Economies of Scale
3.2 Competition Structure of China’s Electrolytic Aluminum Industry
3.2.1 Bargaining Power of Raw Material Suppliers of Electrolytic Aluminum
3.2.2 Bargaining Power of Consumers of Electrolytic Aluminum
3.2.3 Internal Competition of Electrolytic Aluminum Industry
3.2.4 Potential Entrants in Electrolytic Aluminum Industry
3.2.5 Substitutes for Electrolytic Aluminum
4 Analysis on Major Electrolytic Aluminum Producers in China, 2015-2017
4.1 Aluminum Corporation of China Limited (CHINALCO)
4.1.1 Enterprise Profile
4.1.2 Operation Status
4.2 Yunnan Aluminum Co., Ltd. (YNLY)
4.2.1 Enterprise Profile
4.2.2 Operation Status
4.3 Henan Shenhuo Coal & Power Co., Ltd.
4.3.1 Enterprise Profile
4.3.2 Operation Status
4.4 Jiaozuo Wanfang Aluminum Manufacturing Co., Ltd.
4.4.1 Enterprise Profile
4.4.2 Operation Status
4.5 Xinjiang Joinworld Co., Ltd.
4.5.1 Enterprise Profile
4.5.2 Operation Status
4.6 Zhejiang Dongliang New Materials Co., Ltd.
4.6.1 Enterprise Profile
4.6.2 Operation Status
4.7 Henan Zhongfu Industry Co., Ltd.
4.7.1 Enterprise Profile
4.7.2 Operation Status
4.8 Shandong Nanshan Aluminum Co., Ltd.
4.8.1 Enterprise Profile
4.8.2 Operation Status
4.9 Yechiu Metal Resource Recycling (China) Co., Ltd.
4.9.1 Enterprise Profile
4.9.2 Operation Status
5 Analysis on Cost and Prices of China Electrolytic Aluminum Industry, 2014-2017
5.1 Analysis on Cost of China’s Electrolytic Aluminum Industry
5.2 Analysis on Prices of China’s Electrolytic Aluminum
6 Forecasts on Development of China’s Electrolytic Aluminum Industry, 2017-2021
6.1 Factors Influencing Development of China’s Electrolytic Aluminum Industry, 2017-2021
6.1.1 Major Driving Forces and Market Opportunities of China’s Electrolytic Aluminum Industry, 2017-2021
6.1.2 Threats and Challenges Faced by China’s Electrolytic Aluminum Industry
6.2 Forecast on Supply of China’s Electrolytic Aluminum Industry, 2017-2021
6.2.1 Forecast on Capacity and Output Volume of China’s Electrolytic Aluminum Industry, 2017-2021
6.2.2 Forecast on Electrolytic Aluminum Product Structure
6.3 Forecast on Demand of China’s Electrolytic Aluminum Industry
Chart China’s GDP, 2011-2021
Chart Major Policies on China’s Electrolytic Aluminum Industry
Chart Output Volume of Electrolytic Aluminum in China, 2006-2016
Chart New-added Capacity of Electrolytic Aluminum in China, 2011-2016
Chart Import and Export Volume of China’s Electrolytic Aluminum Industry, 2012-2016
Chart Apparent Consumption of Electrolytic Aluminum in China, 2012-2016
Chart Output Volume of Aluminum Materials in China, 2012-2016
Chart Completed Areas of China’s Real Estate, 2012-2016
Chart Operating Revenue of Electrolytic Aluminum of Aluminum Corporation of China Limited, 2012-2016
Chart Operating Revenue of Aluminum Ingot of Henan Shenhuo Coal & Power Co., Ltd., 2012-2016
Chart Operating Revenue of Electrolytic Aluminum of Jiaozuo Wanfang Aluminum Manufacturing Co., Ltd., 2012-2016
Chart Operating Revenue of Aluminum of Xinjiang Joinworld Co., Ltd., 2012-2016
Chart Operating Revenue of Aluminum Business of Zhejiang Dongliang New Materials Co., Ltd., 2012-2016
Chart Operating Revenue of Electrolytic Aluminum of Henan Shenhuo Coal & Power Co., Ltd., 2014-2016
Chart Operating Revenue of Aluminum Profile Products of Shandong Nanshan Aluminum Co., Ltd., 2012-2016
Chart Operating Revenue of Aluminum of Yechiu Metal Resource Recycling Co., Ltd., 2012-2016
Chart Price of Alumina in China’s Market, 2014-2017
Chart Price of Electrolytic Aluminum in China, 2014-2017
Chart Forecast on Output Volume of Electrolytic Aluminum in China, 2017-2021
Chart Forecast on Apparent Consumption Volume of Electrolytic Aluminum in China, 2017-2021