The New Development Era of Secondary Aluminium under China’s Carbon Strategy

Published: Oct 13, 2021 14:56
In China, the domestic aluminium scrap accounted for 89% of the total raw materials of secondary aluminium, meaning that the production of secondary aluminium has been more independent. China’s secondary aluminium production capacity has reached 14 million mt, accounting for about 30% of the global total secondary aluminium production. And it has become the world's largest producer of secondary aluminium.

SHANGHAI, Oct 13 (SMM) - In China, the domestic aluminium scrap accounted for 89% of the total raw materials of secondary aluminium, meaning that the production of secondary aluminium has been more independent. China’s secondary aluminium production capacity has reached 14 million mt, accounting for about 30% of the global total secondary aluminium production. And it has become the world's largest producer of secondary aluminium.

The whole industry has been developing in a more balanced pattern. While the scaled recycling enterprises have also become an important supply channel for aluminium scrap, indicating heightening industry concentration ratio.

During the "13th Five-Year Plan" period, China's secondary aluminium output totalled about 34.8 million mt, reducing the extraction of aluminium ore by 139.2 million mt, conserving the utilisation of standard coal and water by 120 million mt and 770 million cubic metre, respectively, and reducing the discharges of carbon dioxide and solid waste by 380 million mt and 696 million mt, respectively.

China's secondary aluminium industry has made great achievements in the past, but it should also be pointed out that China’s proportion of secondary aluminium in the total aluminium production is still at the level of developed countries in the eighties.

According to the resource and consumption forecast, China's aluminium consumption is expected to reach a peak by 2024, after which it will basically be in a plateau period, with primary aluminium production gradually shrinking due to policy and economic reasons; while the production of secondary aluminium will ramp up year by year, and the proportion in total consumption will gradually increase.

By 2025, China's secondary aluminium production will reach 11.5 million mt; the aluminium scrap utilisation efficiency and the added value of products will both be improved; the technical level of secondary aluminium and the equipment will be significantly enhanced; the degree of harmless treatment of aluminium ash and the utilisation rate of resources will be further improved. By 2030, the output of secondary aluminium will reach 18 million mt; the secondary aluminium processing technology will reach the international advanced level; a sophisticated industrial system will be formed; and the utilisation rates of aluminium ash and other solid wastes will reach 100%.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
The cost-driven upward momentum continues, next week the price center of finished steel may edge up slightly [SMM Steel Industry Chain Weekly Report]
14 hours ago
The cost-driven upward momentum continues, next week the price center of finished steel may edge up slightly [SMM Steel Industry Chain Weekly Report]
Read More
The cost-driven upward momentum continues, next week the price center of finished steel may edge up slightly [SMM Steel Industry Chain Weekly Report]
The cost-driven upward momentum continues, next week the price center of finished steel may edge up slightly [SMM Steel Industry Chain Weekly Report]
This week, ferrous metals trended mostly higher, with performance varying slightly among varieties. Coking coal and coke were the strongest performers, while iron ore and finished steel posted relatively limited gains. During the week, safety supervision remained stringent, the pace of production resumptions at coal mines fell short of expectations, and structural shortages of coking coal grades further deepened, leading coking coal futures to continue rising. Coking plants suffered heavy losses...
14 hours ago
August 21 Scrap Battery Market Transaction Summary [SMM Daily Review]
14 hours ago
August 21 Scrap Battery Market Transaction Summary [SMM Daily Review]
Read More
August 21 Scrap Battery Market Transaction Summary [SMM Daily Review]
August 21 Scrap Battery Market Transaction Summary [SMM Daily Review]
14 hours ago
[SMM Weekly Review of the Indian Market] Export Indications Rise While Domestic Prices Stabilise
16 hours ago
[SMM Weekly Review of the Indian Market] Export Indications Rise While Domestic Prices Stabilise
Read More
[SMM Weekly Review of the Indian Market] Export Indications Rise While Domestic Prices Stabilise
[SMM Weekly Review of the Indian Market] Export Indications Rise While Domestic Prices Stabilise
India’s steel market strengthened during August 17–21, although overseas buyer resistance restricted transactions. Billet export indications rose to 470USD/tonne FOB India, but no deal was confirmed at this level. Indian HRC offers to Vietnam increased to 520–525USD/tonne CFR, against buyer indications of 505–510USD/tonne CFR. Domestically, HRC remained stable at 609USD/tonne (58,100INR/tonne) EXW Mumbai, while billet stood at around 453USD/tonne (43,200INR/tonne) delivered Mandi Gobindgarh, 449USD/tonne (42,800INR/tonne) EXW Mumbai and 415USD/tonne (39,600INR/tonne) EXW Raipur.
16 hours ago
The New Development Era of Secondary Aluminium under China’s Carbon Strategy - Shanghai Metals Market (SMM)