Towning process drives aluminum market development

Towning process drives aluminum market development With the increasing level of urbanization in China, first of all, the social mobility will be further strengthened, and the scale of land transportation will also increase substantially. The superiority of aluminum in the field of transportation vehicle manufacturing will be further reflected and recognized by the society. The data shows that every 10% reduction in car weight can save 3.5% to 6%. Calculated on 500,000 buses, if aluminum is used to reduce the weight of each vehicle by one ton, it will save 2.4 billion liters of fuel, and for every one litre of fuel consumption, it will reduce 2.33 kilograms of carbon dioxide emissions. It can be seen that the application of aluminum materials in transportation can not only reduce fuel consumption, but also reduce greenhouse gas emissions.

Second, the improvement of urbanization will drive the development of the construction industry. In the construction industry, the use of aluminum doors and windows, curtain walls has become the direction of development of the building. Studies have shown that in the design and decoration of houses, the use of aluminum doors and windows, curtain walls, the use of aluminum thermal conductivity, can make the room cool in winter and cool in summer, achieve the best insulation effect, thus saving a lot of energy. A survey conducted by McKinsey & Co. Consulting shows that if you can maintain indoor temperature well, this alone can reduce energy consumption by 25% to 35%.

Once again, the level of urbanization will increase, the larger the coverage of the power grid will be, and the amount of wire and cable will increase substantially. At present, the shortage of copper resources and high copper prices have hindered the scale development of the wire and cable industry. Therefore, the wire and cable "Al-copper" has gradually become the consensus in the industry. Rich aluminum resources and good energy-saving and emission-reducing effects make aluminum the most effective conductive material.

As part of the “Chinese Dream”, urbanization has entered China’s development history. In this process, whether it is the “urbanization” or “job industry” of urbanization, aluminum products are indispensable, and the aluminum processing industry is bound to Writing a thick brush on the road to urbanization in China.

The new type of urbanization may benefit from the real estate industry, and the home improvement industry will surely benefit from the development of real estate. At present, in the domestic market of doors and windows, the widespread use of aluminum doors and windows products has been recognized by the owners. It not only becomes the first choice to cut off the home improvement market, but with the development of the market and the maturity of industry technologies, some of them originally engaged in the production of aluminum alloy doors. The enterprises have begun to set foot in the curtain wall and aluminum window industry for the external walls, and some of the self-built houses and villas have provided room for the development of the aluminum doors and windows industry. The policy of urbanization has its stability, and it will continue throughout the next decade. Impact on the economic restructuring of the future for a long time. The development of urbanization, the focus of which is in the third and fourth tier cities, as aluminum alloy doors and windows of the development of a huge three or four-tier cities, will inevitably bring a huge market aluminum alloy doors and windows.

The “***” report placed urbanization in two very important positions: First, urbanization has become the carrier for building a well-to-do society in an all-round way, and second, urbanization has become the carrier of adjustment of economic structure and transformation of development methods. Obviously, urbanization has become a top priority for China’s economic development. These policy factors will surely be reflected in the development of aluminum doors and windows in China. Urbanization will inevitably inject new momentum into the aluminum doors and windows industry in China.

Benefited from the resolution of the US fiscal cliff, risk assets gained momentum at the beginning of the year and won a new year. Subsequently, the Fed hinted that it may withdraw its quantitative easing at the end of the year and copper prices fell back. With China's urbanization policy officially opened this year, the copper market's optimism is gradually mobilized, and the company’s pre-holiday stock-ups are effective support for copper prices. Copper prices are likely to replicate the rise in the first quarter of last year. . At present, the growth of copper consumption in Europe and the United States is difficult to pick up, the global demand for copper is still concerned about the proportion of 40% of China, so the current market price of copper remains a matter of course, the market outlook, Shanghai copper will continue to challenge the pressure of 58500 first-line, and is expected to break through.

As the copper price continues to improve in the near future, the price of copper cables with copper utilization rate exceeding 60% will rise accordingly, and China’s copper resources will be relatively scarce. The relevant data show that China’s copper reserves are approximately 26 million tons, and China’s annual The actual amount of copper used is nearly 5 million tons, and as a result, China's copper resources support up to five years. Therefore, the cable industry has become more and more prosperous.

Throughout the world, the cable "aluminum substitute copper" has a long history. As early as the 1950s, due to the rapid rise of copper prices at that time, the world wire and cable industry proposed to replace aluminum with aluminum. In the 1970s, for the same reason, there was a global call for replacing aluminum with copper. In 2005 and 2008, the demand was even louder than ever, and this appeal was increasingly valued by the country and the wire and cable industry. At present, the development of urbanization in China has increased the demand for wires and cables, and the advantages of high quality and low cost aluminum alloy cables have become increasingly evident.

At present, the scale of the global wire and cable market has exceeded 100 billion euros. In the global wire and cable industry, Asia's market size accounts for 37%, the European market is close to 30%, the American market accounts for 24%, and other markets account for 9%. Among them, China's wire and cable industry plays an irreplaceable role in the global wire and cable industry. As early as 2011, the output value of China's wire and cable companies has surpassed that of the United States, ranking first in the world.

In recent years, China's aluminum alloy cable has grown at a rate of 3 to 5 times per year. It is expected that in the next five years, the aluminum alloy cable market in China will develop at a more rapid pace, and a market size of more than 200 billion yuan will be formed. The market demand outlook is very impressive. Although last year, the wire and cable manufacturers across the country all stated that there was a general shortage of operating capacity and excess production capacity, and even once caused a collapse. However, as the aluminum-based copper technology becomes more and more mature, it can foresee that China's wire and cable industry will usher in new developments by saving the cost of raw materials and promoting the construction of urbanization.

It is worth noting that with the acceleration of the speed of new urbanization in China, the transformation of existing rural power grids and the construction of new power grids will bring good opportunities for the development of China's second- and third-tier cable companies. In fact, its product quality can meet its construction requirements, but with the change of people's concept, prices are no longer the only preferred condition, and quality is increasingly occupying an important position. Therefore, China's relevant wire and cable companies are in the process of satisfying the new urbanization construction in China. In the case of demand, it is also necessary to carry out certain technological innovations. Through technological innovation, the realization of “aluminum substitute copper” in the wire and cable industry will become an inevitable result of market and industrial development. When urbanization progresses, it is also “aluminum substitute copper” wire. New opportunities for cable development.

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