Secondary Aluminum Market Poised for Notable Growth Despite Capacity Utilization Challenges

Published: Sep 10, 2024 15:52

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The secondary aluminum market is projected to witness remarkable growth. According to expert forecasts, by the first half of 2024, the national production capacity of secondary aluminum is expected to reach 23 million tons, yet the current capacity utilization rate is only around 50%. This phenomenon can be primarily attributed to two factors: firstly, the supply of scrap aluminum has hit a bottleneck; secondly, the current statistical base for domestic secondary aluminum production capacity is relatively broad, partially encompassing flexible production lines. Looking ahead, the output of secondary aluminum is anticipated to reach 11.5 million tons by 2025, with a compound annual growth rate of 5-6% over the next five years. The industry's supply will continue to be dominated by electrolytic aluminum.

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