Aluminum Industry Develops Kinetic Energy Conversion Risks and Opportunities
- Author:Dong Xing
- Source:aluminummanufacturerchina.com
- Release on:2018-06-07
The overall demand maintains a rapid growth. The specific industries are seen in the downstream industry. Currently, the construction industry is still the largest application area of aluminum in China, accounting for 33% of the total. Compared with developed countries, China's transportation industry accounts for a significantly lower ratio of aluminum consumption. With the growth of the real estate industry tending to be stable, aluminum processing will develop in the direction of industrial profiles in the future.
Although real estate is regulated, as a pillar industry in China, there will be no downfall in the short term, and the downstream demand remains stable. As for the second largest domestic industry, the automobile industry is undergoing a fundamental change. It may become a new kinetic energy that will drive the growth of aluminum industry.
First, the kinetic energy conversion of aluminum products.
This year's market, we are level two people are self-deprecating monkey market, Monkey is Trump the Emperor, monkey monkey weapons of mass destruction is the history of the most powerful cannon, which led to this year's global trade friction and stock market fluctuations However, to a certain extent, it also accelerated the opening up of the country. China announced at the Boao Forum that this year will reduce vehicle import tariffs considerably, and then promised to fully liberalize foreign investment ratio in the automotive industry within five years.
Undoubtedly, after so many years of joint venture operations, the domestic automobile industry has developed relatively well. Even if the market is liberalized, domestic industries can develop healthily, like Geely Auto (175.HK) in its own brand. Great Wall Motor (601633.SH, 2333.HK) and BYD (002594.SZ, 1211.HK) of New Energy Vehicle have all been able to stand on their own feet. Releasing the market does not mean the world is ruined, but for most domestic auto companies In terms of comparison, the future should be more focused on new energy vehicles than traditional power automobiles.
In 2017, the production and sales of new energy vehicles were nearly 800,000, reaching 774,000 vehicles and 777,000 vehicles, respectively, a year-on-year increase of 53.8% and 53.3% respectively. In 2017, the new energy auto market accounted for 2.7%, which was an increase of 0.9% from the previous year. As new energy vehicles have a huge advantage in energy conservation, the new energy automotive industry has expanded rapidly in recent years, and the demand for aluminum automotive parts has increased significantly.
Compared to traditional automobiles, new energy vehicles use batteries as power to drive automobiles, and thus power is constrained by the weight of the battery and the mileage of the power battery. Therefore, the weight reduction of the vehicle body is more urgent than that of traditional automobiles. Therefore, the amount of aluminum alloy materials is expected to be greater.
Harbin Dong Xing aluminum co., ltd is a Aluminum sheet manufacturer china, established in the year 2000, located at beautiful city Harbin. Our factory is a competent and reliable supplier in plain and coated aluminum foil, coil, sheet, and other aluminum products in China.