SHANGHAI, Aug 12 (SMM) - Currently, the aluminium industry, whose carbon emissions account for more than 70% of the whole non-ferrous industry, is strictly regulated by capacity restriction scheme under the “twin carbon” target. While secondary aluminium resources finally greets the tailwind due to low energy consumption. In consideration of the underdeveloped recycling of aluminium foil roll, first-mover advantages still exist for companies to secure sources of aluminium scrap.
According to the 14th Five-Year Plan for Circular Economy Development released by the National Development and Reform Commission, secondary aluminium output shall reach 11.50 million mt by 2025, up 55.4% from 2020, the fastest among all non-ferrous metals.
In recent years, due to the rapid growth of aluminium production and sales, the consumption of secondary aluminium took up around 15~18% of the whole market, according to SMM data. The ratio dropped to a recent-low of 15.5% in 2020 because of the pandemic. However, it is expected to significantly rebound to 16.7% in 2021. Among them, 75% of the secondary cast aluminium alloy is used in the automobile sector. Aluminium profiles accounted for about 20% of the total consumption, which has been growing very fast. While aluminium sheet and strip and other products took up only 5% as the quality and quantity of aluminium scrap were still unable to meet certain requirements.