Aluminium Scrap News Roundup (Aug-Sep)

SHANGHAI, Sep 23 (SMM) – This is a roundup of the news in China’s aluminium scrap industry chain from August to September.

1. Hang Yu Aluminium Industry in Huaibei, Anhui Province has invested in the construction of Anhui Xiongchuang aluminium alloy project. Five production lines of Phase I were completed on June 16, 2020 and put into production with rapid development. The company's deputy general manager introduced that from January to July this year, the company produced a total of 25,000 mt of aluminium alloy ingots and achieved a sales revenue of 500 million yuan, reaching full capacity at optimal operating rates.

2. Yu Xiaohui, President and Deputy Secretary of the Party Committee of the China Academy of Information and Communications Technology, pointed out that in the first half of 2021, there was a round of "chip shortage crisis" around the world, and the production suspension of automobile manufacturers have reduced the output of cars by 3 million units, and the delivery cycle of chips for mobiles has also extended from 3 months to 12 months.

3. The investment project of commercial aluminium alloy wheels in Linzhou, Henan Province, invested by Siyang Minyu Xing Precision Machinery Co., Ltd, was put into full production on June 18 this year with the first product successfully coming off the line. It is reported that the project was signed on March 18, with a total investment of 250 million yuan. The production plant is located in Linzhou Electric Vehicle Industrial Park. After the project is completed and put into operation, it will form a production base with an annual output of 1.5 million pieces of aluminium alloy vehicle wheels for commercial use.

4. Zhejiang Jinfei Kaida Wheel Company Limited announced that the Company held a board meeting on 13 September 2021, and passed the Proposal on Land Acquisition and Storage of the Company, in which the Company intends to sign an agreement with the Management Committee of the Development Zone on the acquision and storage of the Company's land located at No. 800 Xianhua South Street, Jinhua City, with an area of 126,614.9 square meters, as well as its attachments and structures. The total amount for the land acquisition was approximately 317,483,500 yuan.

5. The automobile output and sales in August stood at 1,725,000 and 1,799,000 units respectively, down 7.4% and 3.5% MoM, and down 18.7% and 17.8% YoY, respectively, with a decrease of 3.2 and 5.9 percentage points respectively from July. Compared with the same period in 2019, the out and sales fell by 13.4% and 8.2%, respectively. From the monthly sales in 2019 and 2020, the sales level in September-December is significantly higher than the previous months, indicating that market demand is increasing on the month. The production is still under pressure in the future in light of chip shortage.

6. On September 14-15, at the 2021 Sino-Japanese Enterprise Matchmaking Meeting held in Nanhai District, Foshan City, Guangdong Province, the Terada Auto Parts Production Project invested by Dalian Terada Auto Parts Co. executed an agreement and decided to settle in the Japanese SME Industrial Park Phase I in Nanhai, with a total planned investment of 30 million yuan. The company will mainly focus on the production of automotive parts and aluminium products.

7. Hainachuan (Binzhou) Lightweight Automotive Components Co., a wholly-owned subsidiary of tBohai Automotive Systems Co. and a supplier of Chery engine blocks, has seen a steady increase in orders since the project reached optimal operating rates. At present, the subsidiary has started the preliminary preparation for production line renovation and capacity enhancement to meet the customer's demand.

8. On 12 September, the ground-breaking ceremony of the Jiangxi Wantai Aluminium Intelligent Industrial Park project was held in the High-tech Zone of Chongren County. It is reported that the industrial park is invested and constructed by Zhejiang Wantai Aluminium Co. It is understood that Wantai Aluminium Alloy and Aluminium Casting Industrial Park is located in Fuzhou City, with a land area of 120 acres, and will be divided into two phases of construction. Among them, the first phase will be built with an annual output of 100,000 mt of high-performance casting aluminium alloy, the construction period is 12 months. The second phase of the project will mainly cover 20,000 mt of aluminium ash recycling system and 30,000 mt of casting aluminium structural parts production, with a construction period of 18 months.

9. At present, the civil construction of the magnesium alloy workshop of the light metal materials (magnesium alloy, aluminium alloy) as well as the precision processing technology transformation project invested by Shanxi Ruige Metal New Materials Co. have basically completed. Among them, the two production lines of magnesium alloy workshop equipment have been put into trial operation. The total investment amount stood at 60 million yuan, with the introduction of anti-gravity casting equipment and control system, precision casting equipment, large extruder, CNC machine tools, die-casting machine, online degassing device, preheating furnace, environmental protection system, quality testing equipment, and the establishment of other ancillary facilities.

10. Domestic 5G mobile phone output reached 168 million units from January to August this year, an increase of 80% year-on-year. The proportion of 5G phones has increased to 74% in August.