SHANGHAI, Dec 9 (SMM) - Despite the ongoing global economic recession and bleak market demand, a large number of new aluminium plate/sheet, strip and foil projects are scheduled to be put into operation in China before 2025, with a combined capacity of 2.71 million mt, according to SMM statistics.
There will be only two new ordinary plate/sheet projects, of which one is already being commissioned while the other will be put into operation next year. The remaining projects are dominated by high value-added products, such as battery foil, can stock, and auto body sheet (ABS). There are as many as nine battery foil projects, with a combined capacity of 1.04 million mt.
According to SMM statistics, there are currently more than 140 aluminium plate/sheet, strip and foil producers in China, whose combined operating capacity exceeded 22 million mt (including cast rolling coil and aluminium foil stock). Affected by the global economic downturn and renewed pandemic in China, many domestic aluminium plate/sheet, strip and foil producers reported insufficient orders, forcing them to lower their conversion margins. The over 2.5 million mt of new capacity will further intensify the market competition. In the next few years, the operating rates and profitability in the aluminium plate/sheet, strip and foil industry will be jeopardised.
