In the context of global emphasis on environmental protection and energy saving, the demand for aluminum profiles in construction, automobiles, home appliances, electronics and mechanical equipment has gradually expanded, especially in the next few years, the demand for aluminum processing industry will continue to increase; at the same time, we should also see The aluminum processing industry is facing problems such as gradual tightening of policies, declining profitability, and constant trade frictions. Accelerating transformation and upgrading has become an inevitable path for the development of the aluminum processing industry.

1. China's aluminum processing industry policy is gradually tightening

In recent years, China has strengthened the supply-side structural reform of the aluminum processing industry, promoted the technological progress of the industry, and promoted the development of the aluminum smelting industry to high quality. In September 2018, the Ministry of Environmental Protection issued the "Recycling Aluminum Industry Pollution Prevention Technology Policy (Draft for Comment)", which puts forward higher requirements on the waste water, waste gas, solid waste and other emissions of recycled aluminum enterprises; The new version of "Aluminum Industry Standard Conditions (Consultation Draft)" raises higher requirements in terms of energy conservation, environmental protection, and intelligent production in the industry, and the entry threshold for the aluminum processing industry continues to increase.

2. The profitability of China's aluminum processing industry has declined

From 2015 to 2019, although the sales revenue of China's aluminum processing industry has continued to increase year by year, the total profit has shown a sharp decline in the past two years. In 2019, the aluminum processing industry achieved sales revenue of 950.258 billion yuan, an increase of 6.40% year-on-year; The total amount is 17.399 billion yuan, a year-on-year decrease of 31.50%. In terms of sales profit margin, China's aluminum processing industry also shows a downward trend year by year, from 6.31% in 2015 to 2.60% in 2019, a decline of more than 130%.

3. Trade friction in China's aluminum processing industry is becoming the norm

As the competitiveness of China's aluminum processed products continues to increase and exports increase gradually, the United States, as the second largest exporter of aluminum processed products, began to implement trade protectionism against China in 2016, and frequently conducted investigations and lawsuits against Chinese aluminum processed products. Conducted 32 competition investigations on China's aluminum industry, and launched a double-reverse investigation on China's aluminum foil in 2017. In 2019, Vietnam, Argentina, Eurasian Economic Union, Ukraine, Mexico, Indonesia and other countries or regions have conducted anti-dumping investigations on China's exports of aluminum, aluminum products and aluminum-containing products. Trade friction in China's aluminum processing industry has gradually become normal. Increased the pressure and difficulty of China's aluminum exports.

4. From "quantity" to "quality" into the development direction of China's aluminum processing industry

Facing the problems of tightening policies, declining profitability, and continuous trade friction in China's aluminum processing industry, China's aluminum processing industry should accelerate its transformation and upgrade, and develop from "quantity" to "quality". At the same time, aluminum processing enterprises should extend the industrial chain To achieve technology and equipment upgrades, increase the added value of the industrial chain, and develop in the direction of green manufacturing. Aluminum processing enterprises with advantages can accelerate the layout of the global aluminum processing industry chain through mergers and acquisitions. On the one hand, they can reduce the losses caused by trade friction, and on the other hand, they can enhance international competitiveness.

The epidemic in early 2020 is a challenge for China's aluminum processing industry. Enterprises are facing various difficulties. After the epidemic, the market will usher in a "lagging outbreak" in the second half of 2020. For competitive enterprises This is an opportunity, no matter what the trend of the follow-up industry is, we can only talk about development if we can improve the transformation and upgrade from quantity to quality.

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