China’s infrastructure investment has grew 20% year-on-year to 12.67 trillion yuan for the first 11 months of this year, according to the latest data from the National Bureau of Statistics. The increased infrastructure investment lead to a significant growth of metal supply and demand, especially the secondary aluminum.
China’s aluminum output at 2.906 million tonnes in November, up 2.5% year-on-year and 33.319 million tonnes from January to November, up 15.7% year-on-year. Although China’s primary aluminum output grow rapidly, the consumption of secondary aluminum still grew by 20 percent. As for the demand, Aluminum Statistical Review shows seventh straight year of growth globally. And It is worth nothing that China’s secondary aluminum consumption is set to rise since government policy supports on EVs and the rising demand of auto.
It is undeniable that Aluminum has great EVs, which are mainly used in auto production, house appliance and building hardware. Specifically, motorcycles and electric vehicles account for 75% of aluminum consumption. China’s annual auto sales growth is set to reach 5% in 2018, further steady growth in the coming years is also be expected.
However, the scarcity of aluminum and the increasing demands of aluminum products force companies to focus on secondary aluminum production. During the recycling process, various aluminum scraps are used to reproduce aluminum alloy. And the performance and strength of the primary aluminum are maintained, so that the recycled aluminum can go into secondary process again and again, which multiplying the cost savings. Currently, secondary aluminum consumption accounts for 30% of global market. In European and North American countries, the figure is close to 70%. Therefore, with more and more companies see the link between sustainable manufacturing and profits, their interest and investment in recycled aluminum will continue to rise.
Besides the economic value for business use, secondary aluminum also has great environmental benefits for society, which is more environmental friendly with lower energy consumption, less greenhouse gas emissions, less and landfill waste. Furthermore, less energy consumption and landfill waste greatly reduce the damage to the land vegetation while recycled aluminum resources at the same time. As a result, the secondary aluminum industry has an important social benefits in terms of environmental production.
Based on the analysis above, the secondary aluminum consumption in China will definitely rise in the following years.