Recently, at the 2020 China Aluminum Processing Industry Annual Conference, Chang Guowu, Deputy Director of the Raw Materials Department of the Ministry of Industry and Information Technology, delivered a speech at the conference. In his speech, Chang Guowu analyzed the problems and challenges facing China's aluminum processing industry and put forward four suggestions for accelerating the high-quality development of the aluminum processing industry.
Chang Guowu stated that the aluminum processing industry is the second largest metal industry after the steel processing industry, and is an important pillar industry for improving the development level of the industrial chain and promoting the high-quality development of the manufacturing industry. China's aluminum processing industry accounts for more than half of the world's production capacity and output, with world-class equipment and technology. On the basis of basically meeting the needs of national economic construction, its products are exported to more than 200 countries and regions around the world, and it has become a global producer, consumer, and exporter of aluminum materials. Especially since this year, the domestic aluminum processing industry has actively responded to the impact of the COVID-19, and comprehensively promoted the epidemic prevention and control and the resumption of production.
Currently, the profit of the aluminum processing industry is gradually turning from negative to positive, becoming a key factor for the stable operation of the non-ferrous metal industry. However, it should also be noted that the foundation for the sustained improvement of China's aluminum processing industry is not yet stable, and the task of transformation and upgrading remains arduous. From a domestic perspective, the growth rate of traditional consumer sectors such as building structures and transportation has slowed down. In 2019, primary aluminum consumption showed negative growth for the first time, and aluminum consumption is about to enter the platform area. The aluminum processing capacity is relatively large, and the supply-demand contradiction is prominent. From an international perspective, trade protectionism and unilateralism are on the rise, economic globalization is facing headwinds, and anti-dumping investigations on aluminum materials are frequent. Coupled with the decline in foreign demand due to the pandemic, China's aluminum exports from January to July were only 2.62 million tons, a year-on-year decrease of 15.6%. The pressure on aluminum exports will continue to increase in the future.
At the same time, the technological breakthroughs and industrial application pace of high-end materials such as aviation aluminum, automotive aluminum, and aluminum foil for power batteries need to be accelerated. The stability and consistency of quality need to be further improved, and the ability to meet and lead downstream demand needs to be further enhanced. Chang Guowu emphasized that in the next step, we must conscientiously implement the spirit of General Secretary Xi Jinping's series of important speeches, find the right positioning in the dual circulation development pattern, combine with the actual situation of the aluminum processing industry, take practical and effective measures, and accelerate the high-quality development of the aluminum processing industry.
One is to actively expand domestic demand. Fully leverage the comprehensive advantages of excellent performance and environmental friendliness of aluminum products, seek opportunities in adapting to and leading consumption upgrades, continuously explore application areas, expand market scale, promote the application of green building materials such as energy-saving and heat-insulating aluminum alloy doors and windows, and explore new highlights of aluminum consumption in municipal construction, furniture, agriculture, health and epidemic prevention, forming a consumption demonstration role.
The second is to strengthen innovation driven. Fully leverage the role of innovation as the primary driving force for development. Through the upstream and downstream cooperation mechanism of civil aircraft materials, national new material production and application demonstration platforms such as aviation materials, new energy vehicle materials, advanced marine engineering and high-tech ship materials, and high-speed rail materials, we will continue to promote joint research and development between upstream and downstream, guide enterprises to break through key core technologies such as quality stability and consistency control, and promote China's aluminum processing industry to move towards the middle and high end of the global value chain.
Chang Guowu expressed the hope that professionals in the aluminum industry can have extensive exchanges and actively provide suggestions, especially to strengthen the exchange of experience in expanding aluminum consumption, promoting orderly development of the industry, and making new and greater contributions to promoting the transformation and upgrading of China's aluminum processing industry, achieving stable and healthy development.