Current situation of aluminum industry in China

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Current situation of China's aluminum industry

the aluminum industry is one of the industries with the highest social contribution rate in China's non-ferrous metal industry. In the past two years, the contribution rate of total assets has been more than 10%, which is not only higher than the average level of 9% of the national industry, but also much higher than the average level of 7% - 8% of China's non-ferrous metal industry, which shows that China's aluminum industry is an industry with sustainable development ability

since 2003, China's aluminum industry has witnessed a hot investment boom under the temptation of accelerating the upgrading of plastic granulator technology induced by China's growing aluminum consumption demand. The strategic pattern of China's aluminum market is being re differentiated. The strategic pattern dominated by large and medium-sized state-owned enterprises has been broken. Private capital is entering the aluminum industry in a large scale in different ways. The competitive situation of grabbing the market, competing for raw materials, competing for investment and scaling up has taken shape. In this regard, industry experts pointed out that the unprecedented investment boom in China's aluminum industry is the result of market pull and interest drive, which is driven not only by domestic market factors, but also by global market forces. In this process, not only the original aluminum oxide plants, aluminum smelters, and even aluminum processing enterprises are starting a new strategic investment, restructuring and scale expansion with great fanfare, but also some new aluminum oxide plants and aluminum smelters are also under construction at an alarming speed, thus breeding a fierce battle of aluminum investment and competition without gunsmoke. In this regard, it is necessary for us to analyze the strategic development trend faced by China's aluminum industry at present

first, private capital suddenly rose, and huge investments shook the domestic aluminum industry

at the beginning of 2002, after long-term brewing and market investigation, the famous domestic private enterprise - Oriental hope group resolutely announced that the group had selected the aluminum electric complex industry as the group's second main business. The group suddenly decided to enter China's aluminum production industry on a large scale, which not only caused an uproar in China's aluminum industry, but also caused huge repercussions in domestic and foreign markets. In the field of heavy industry in which Chinese state-owned enterprises compete for hegemony, a private enterprise that has nothing to do with the aluminum industry also wants to compete in this industry with large investment, market and industry, and the decision to expand capital as the second main industry is amazing. It should be said that this is a shocking move for China's aluminum industry

from the first half of 2002 to now, in just one year, the group has entered the field of China's aluminum industry with rapid development and made three solid strides

first of all, after the group announced its entry into the aluminum industry on April 15, 2002, it invested 600million yuan to jointly establish Shandong Xinfa hope Aluminum Co., Ltd. with Shandong Chiping Xinfa aluminum group. This enterprise will have a production capacity of 140000 tons of electrolytic aluminum, supplemented by deep processing and supporting heating units. This project was started on September 8th, 2002. At present, the second phase of electrolytic aluminum project is about to be put into operation. The move was seen as a prelude to its investment in the aluminum industry

at the same time, less than half a year after its investment in Shandong Xinfa aluminum, another amazing move occurred in Baotou, Inner Mongolia, in Western China. In October, 2002, the group quickly established a rare earth aluminum company in Baotou, which is a large-scale aluminum integration project invested and constructed in Baotou, with a registered capital of 300million yuan. It is understood that the aluminum power project of the group plans to be constructed and operated in four phases from 2002 to 2008. The first phase of the project has invested 1billion yuan and is expected to be completed and put into operation by the end of 2003. In the initial stage, 250000 tons of electrolytic aluminum production capacity will be formed. In order to solve the problem of electricity consumption in electrolytic aluminum production, the enterprise also built its own thermal power plant. The planned total installed capacity of the thermal power plant is 2.7 million KW, which was started in April 2003, with a construction installed capacity of 310000 kW. The first phase of the power plant project is planned to be completed and put into use in May 2004. According to the plan, after the first phase of the aluminum power project is completed and put into operation, the second phase of the project has also been fully constructed. According to this construction process, the electrolytic aluminum plant will reach an annual production capacity of 1million tons of metal aluminum in 2008, and the self owned power plant will form a power generation capacity of 2.7 million KW

at the beginning of the first phase of Baotou rare earth aluminum industry and the second phase of the project, the group began its third major measure. In July, 2003, the 1.05 million ton alumina project in Mianchi County, Sanmenxia City, which was jointly participated by him and three other shareholders, was officially started. The total investment of the project is expected to be nearly 4.6 billion yuan. Industry insiders generally believe that this move is expected to break the long-term monopoly of aluminum upstream resources by Chinalco, especially its US funded background, which will pose a new challenge to Chinalco

with such a scale and speed of investment, private enterprises have rapidly expanded their strategic expansion into the aluminum industry in just one year, which really amazed people in the industry

second, the integration of local aluminum enterprises, and the addition of giants to the aluminum market

on August 8 this year, Chinalco group, jointly sponsored by three Henan companies, was officially established and listed in Shanghai. Through the asset restructuring of local aluminum enterprises, the annual production capacity of aluminum electrolysis of Chinalco group will reach 800000 tons by the end of this year, and will gradually exceed 2million tons by 2005. At that time, it will become the largest production enterprise of aluminum electrolysis in China. It is reported that its successful establishment will break the monopoly pattern of aluminum industry group of China, which currently monopolizes the aluminum market in China

in addition, after its establishment, the enterprise will strive to give full play to the asset resource advantages of its shareholders, and plan to purchase mineral resources in Australia, Chile or Brazil, which are rich in mineral resources. At the same time, it will actively participate in the investment and construction of alumina projects, control the purchase cost of aluminum oxide of the group's electrolytic aluminum production enterprises, stabilize the supply channel, and form a complete industrial chain of electrolytic aluminum production as soon as possible

third, China has increased the surface heat of workpieces at the same time. Large enterprises have expanded steadily, and the industry advantage ranks first.

following the policy disintegration of China National Nonferrous Metals Industry Corporation in 2000, the only enterprise with a background in the nonferrous metals industry is Aluminum Corporation of China. After several years of integration, it was officially established in Beijing on April 4 this year. After the establishment of the company, it quickly launched a merger and reorganization action, and put the aluminum enterprises that have been decentralized to various provinces and regions into the bag

although Aluminum Corporation of China was established soon, its special background determines that it will inevitably become a monopolist in China's aluminum market. Chinalco is not only the only alumina producer in China, but also the largest primary aluminum producer in China at present

according to statistics, at present, the output of electrolytic aluminum of Chinalco group accounts for more than 70% of the total output of the country, and the output of alumina accounts for 100% of the national output. In the first half of this year, the output of several alumina production enterprises under the company reached 2.89 million tons, and the annual output is expected to reach 5.7 million tons

in order to take the lead in China's alumina market, the 800000 ton alumina project of the Shanxi Branch of the group has been started a few days ago. It is understood that the 800000 ton alumina project was approved by the state in April 2002 and is the leading project of Shanxi 1311 production regulation project. The project plans to invest 3.4 billion yuan and is expected to be completed and put into operation in August 2005. After the project is completed and put into operation, the alumina output of Shanxi Branch will reach 2.2 million tons on the basis of the existing 1.4 million tons, so that China's plastic machinery enterprise market will be further opened up, making the group's alumina production capacity enter the top five in the world, and truly become a world-class aluminum oxide production base and the largest aluminum industry base in Asia

in addition, the Pingguo alumina phase II project of Aluminum Corporation of China, a national key construction project of the tenth five year plan, which was completed and put into operation at the end of June this year, will significantly increase the alumina output of Aluminum Corporation of China. The Pingguo Aluminum phase I project, which started construction in May 1991, with a total investment of 4.438 billion yuan, introduced advanced technology and equipment from seven countries, and was fully completed and put into operation in 1995. Pingguo alumina phase II project is a production line with an annual output of 400000 tons of alumina expanded by Aluminum Corporation of China on the basis of Pingguo alumina phase I project. The project is also the first key project of Guangxi to participate in the western development. It consists of bauxite mines, alumina plants and supporting utilities, with a total investment of 1.886 billion yuan. Pingguo alumina phase II project was completed and put into operation, making the alumina production capacity of Aluminum Corporation of China Guangxi Branch jump from 450000 tons to 850000 tons per year, which is of positive significance to alleviate the tight supply of domestic alumina, reduce imports and save foreign exchange. It plays an important role in realizing the optimal allocation of bauxite resources and promoting the structural adjustment of China's aluminum industry. It is reported that Chinalco will invest 17.615 billion yuan in the next few years to expand alumina and aluminum production capacity

IV. the investment boom in aluminum industry has attracted the attention of relevant national departments

the investment and expansion boom in China's aluminum industry in the past year has attracted the attention of relevant national departments

in April 2002, the relevant departments of the State Council pointed out that if the momentum of repeated construction in the electrolytic aluminum industry is not stopped as soon as possible, it is bound to cause a waste of national resources and funds. In February this year, the State Economic and Trade Commission expressly warned that this year and next, domestic electrolytic aluminum will show a total surplus, oversupply and a downward trend in price, so investing in electrolytic aluminum projects will face greater risks. The State Economic and Trade Commission reminded investors to be cautious. In August this year, the head of the national development and Reform Commission said when talking about the phenomenon of investment fever in China's electrolytic aluminum industry that in 2002, there had been a phenomenon that production capacity exceeded production and production exceeded sales, but some places were still blindly launching new projects. According to the survey, on the basis of the existing capacity of 5.3 million tons, the current capacity under construction is 3.95 million tons, and the proposed capacity is 4million tons. The contradiction of overcapacity is prominent. Since alumina, the raw material for electrolytic aluminum production in China, needs to be imported in large quantities, and the supply of alumina in the international market is relatively tight, the momentum of rapid expansion of electrolytic aluminum industry will be difficult to sustain

according to statistics, China's primary aluminum output in 2002 was 4.36 million tons, accounting for about 16.8% of the global output, ranking first in the world for two consecutive years. However, compared with their counterparts in the world, the disadvantages of Chinese aluminum enterprises are also very obvious. Industry insiders believe that there are five obstacles restricting China's aluminum enterprises to become bigger and stronger. 1. Low production concentration, small enterprise scale and poor ability to resist market risks. By the end of 2002, the average scale of China's electrolytic aluminum plant was 39200 tons/year, compared with 193000 tons/year internationally, a difference of 4.92 times; 2. Single product. In 2002, about 95% of China's aluminum ingot output was primary aluminum, with few alloy aluminum. Moreover, the R & D ability of the enterprise is not strong, and the independent intellectual property rights are few; 3. The proportion of raw materials and products outside has increased, which is greatly affected by the international market. In 2002, China imported 4.57 million tons of alumina, more than 40% of the total domestic demand. It is expected that the gap between supply and demand of alumina will continue to increase this year; 4. Disorderly competition caused by multiple imports and exports and their own wars, and there are obvious weak links in the industrial chain; 5. There is a big gap between the operation and management of enterprises and international multinational corporations. Low level of production technology, high energy consumption and serious pollution

for the investment boom in China's aluminum industry and the harsh reality of the domestic alumina market, the relevant departments of Henan Province, China's largest aluminum industry base, organized in July this year

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