Light Gauge Aluminium Foil Capacity May Replace Part of Battery Foil Capacity due to Higher Profitability

Published: Feb 23, 2022 14:10
Source: SMM
According to SMM's statistics, battery foil is still one of the hottest products in the aluminium foil market. Many enterprises have announced that they will expand their battery foil production capacities. SMM briefly sorts out the new projects as follows.

SHANGHAI, Feb 23 (SMM) – According to SMM's statistics, battery foil is still one of the hottest products in the aluminium foil market. Many enterprises have announced that they will expand their battery foil production capacities. SMM briefly sorts out the new projects as follows.

If all the new battery foil production capacities are put into production as scheduled, the total capacity in China will exceed 1 million mt by 2025.

However, SMM believes that most large-sized aluminium foil enterprises can switch their battery foil production lines to the light gauge foil production. Due to the ban on plastic bags, the demand for the packaging light gauge foil is strong, and some high-end packaging light gauge foil is even more profitable than the battery foil.

Therefore, some of the capacities in the table may be put into the production of light gauge foil.

The change in downstream demand is the most important factor affecting the actual output of battery foil.

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 to learn 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
BoE Governor Signals Dovish Stance, Tolerating Inflation Above 2% Amid Economic Weakness
13 hours ago
BoE Governor Signals Dovish Stance, Tolerating Inflation Above 2% Amid Economic Weakness
Read More
BoE Governor Signals Dovish Stance, Tolerating Inflation Above 2% Amid Economic Weakness
BoE Governor Signals Dovish Stance, Tolerating Inflation Above 2% Amid Economic Weakness
Bank of England Governor Bailey sent a clearly dovish signal. He noted that given the current economic weakness, the central bank could tolerate inflation exceeding the 2% target for a period of time. This remark significantly lowered market expectations for a rate hike in June. However, Bailey also warned that once signs of second-round effects emerged, the central bank's tolerance for inflation would diminish accordingly.
13 hours ago
Eurozone Inflation Surges, ECB Signals Likely Rate Hikes in June and Beyond
13 hours ago
Eurozone Inflation Surges, ECB Signals Likely Rate Hikes in June and Beyond
Read More
Eurozone Inflation Surges, ECB Signals Likely Rate Hikes in June and Beyond
Eurozone Inflation Surges, ECB Signals Likely Rate Hikes in June and Beyond
The eurozone was facing a broad-based intensification of inflationary pressures. Specifically, the Consumer Price Index (CPI) in France and Spain rose 2.8% and 3.6% YoY in May, respectively, both hitting their highest levels since 2024. Meanwhile, Italy's inflation rate climbed to 3.3%, reaching its peak since 2023, while Germany's core inflation also accelerated to 2.5%. Against this backdrop, ECB Governing Council member Simkus noted that a rate hike in June was almost a foregone conclusion, and that further rate hikes would "very likely" be needed thereafter.
13 hours ago
Fed Officials Diverge on Impact of Middle East Conflict on Inflation and Rate Hike Necessity
13 hours ago
Fed Officials Diverge on Impact of Middle East Conflict on Inflation and Rate Hike Necessity
Read More
Fed Officials Diverge on Impact of Middle East Conflict on Inflation and Rate Hike Necessity
Fed Officials Diverge on Impact of Middle East Conflict on Inflation and Rate Hike Necessity
US Fed Vice Chair Bowman noted that it was still too early to judge the impact of the Middle East conflict on US inflation, and that temporary price shocks should be overlooked. However, Kansas City Fed President Schmid argued that it was difficult to continue viewing the current energy price shock as a "transitory" factor, and that officials needed to clearly express their willingness to take necessary measures to maintain price stability. The Fed's Kashkari stated that it was too early to determine whether rate hikes were needed, and that all possible policy options should be kept open. Fed official Paulsen said there had been no structural change in inflation.
13 hours ago
Light Gauge Aluminium Foil Capacity May Replace Part of Battery Foil Capacity due to Higher Profitability - Shanghai Metals Market (SMM)