China Business Intelligence Network News: Aluminum foil is a hot stamping material that is directly rolled into thin sheets using metallic aluminum. Its hot stamping effect is similar to that of pure silver foil, so it is also known as fake silver foil. China is a major producer and supplier of aluminum foil.
1、 Industrial chain
Aluminum foil is a type of aluminum rolling material, and aluminum products with a thickness less than 0.2mm are commonly referred to as aluminum foil in the industry. Aluminum foil is the aluminum product with the most processing steps, the smallest thickness, and the most difficult difficulty in the aluminum processing industry. The upstream of the aluminum foil industry chain is the supply of raw materials; The midstream refers to the manufacturing and processing process of various aluminum foil products, which can be divided into packaging and container foils, air conditioning foils, electronic/electrode foils, building decoration foils, etc. according to their uses; Downstream applications can be applied in industries such as power electronics, food and medicine, packaging, construction, and transportation.
2、 Upstream analysis
1. Bauxite resource reserves
The global bauxite resources are abundant, and according to USGS data, the global bauxite resource reserves in 2022 are 31 billion tons. Among them, China's resource reserves are 710 million tons, accounting for about 2%, ranking seventh in the world. In terms of production, the global bauxite production in 2022 reached 380 million tons, with China producing 90 million tons, accounting for 24% of the global bauxite production and ranking second in the world. There is a strong demand for bauxite in our country, but the resource reserves are relatively scarce, and the dependence on imports is high.
Data source: Compiled by USGS and China Academy of Commerce Industry Research
2. Aluminum oxide
Aluminum oxide is a high hardness compound that is used downstream in the fields of electrolytic aluminum, abrasives, polishing powders, refractory materials, ceramics, etc. 90% of aluminum oxide is used to produce electrolytic aluminum. China is the world's largest producer of alumina. In 2022, China's alumina production reached 81.862 million tons, with an average annual compound growth rate of 3.07% in the past five years, and the production has maintained stable growth. Analysts from China Academy of Commerce predict that China's alumina production will reach 84.377 million tons in 2023.
Data source: Compiled by the National Bureau of Statistics and the China Academy of Commerce Industry Research
From the perspective of alumina enterprises, the concentration of China's alumina industry is relatively high, and the agglomeration effect within the industry chain is obvious. According to SMM data statistics, as of the end of 2022, there are 44 domestic alumina producers, including 20 super large alumina enterprises (with a production capacity of ≥ 2 million tons), 9 large alumina enterprises (with a production capacity of 1 million tons ≤<2 million tons), 12 medium-sized alumina enterprises (with a production capacity of 500000 tons ≤<1 million tons), and only 3 small alumina enterprises (with a production capacity of<500000 tons). From the perspective of specific enterprises, as of the end of 2022, the top 5 domestic alumina production capacity enterprises were China Aluminum, Hongqiao, Xinfa, Jinjiang, and Dongfang Hope, with a total annual production capacity of 59.16 million tons, accounting for about 66% of the total national production capacity, and CR5 reaching 75%.
Data source: SMM, compiled by China Academy of Commerce Industry Research
3. Electrolytic aluminum
The modern aluminum electrolysis industry adopts the cryolite alumina molten salt electrolysis method. The molten cryolite is used as the solvent, alumina is used as the solute, carbon is used as the anode, and aluminum liquid is used as the cathode. After a strong direct current is applied, electrochemical reactions are carried out at the two poles in the electrolytic cell at 95-97 degrees Celsius. In recent years, the production of electrolytic aluminum in China has steadily increased. According to data from the National Bureau of Statistics, China's electrolytic aluminum production reached 40.214 million tons in 2022, with an average annual compound growth rate of 2.95% in the past five years. Analysts from the China Academy of Commerce predict that China's electrolytic aluminum production will reach 41.399 million tons in 2023.
Data source: Compiled by the National Bureau of Statistics and the China Academy of Commerce Industry Research
The concentration of China's electrolytic aluminum industry is relatively low, with a CR3 of 31%. Among them, China Hongqiao accounts for 14%, China Aluminum accounts for 11%, Yunnan Aluminum accounts for 6%, Inner Mongolia Huolinhe and Shandong Nanshan account for 3% and 2% respectively.
Data source: Compiled by China Academy of Commerce Industry
4. Recycled aluminum
Recycled aluminum uses industrial waste aluminum, socialized waste aluminum, waste aluminum alloys, or aluminum containing waste as raw materials. After pre-treatment, it is remelted and refined to obtain aluminum alloys or aluminum metals, which has high economic, social, and environmental benefits. In recent years, China's production of recycled aluminum has continued to increase, from 6.95 million tons in 2018 to 7.82 million tons in 2022, with an average compound annual growth rate of 2.99%. Analysts from the China Academy of Commerce predict that China's production of recycled aluminum will reach 8.06 million tons in 2023.Data source: Compiled by China Commercial Industry Research InstituteAt present, there are over a thousand recycled aluminum enterprises in China, mainly consisting of private and foreign-funded (joint venture) enterprises, most of which are small-scale enterprises with a high degree of marketization, low market concentration, and fierce industry competition. In recent years, with the further standardization of the industry, some small enterprises have gradually been eliminated, and the market concentration of recycled aluminum enterprises in China has increased. In 2021, the top five companies in the recycled aluminum industry, namely Lizhong Group, Huajin Group, Shuaiyichi Group, Shunbo Alloy, and Yiqiu Resources, had market shares of 6.29%, 4.83%, 4.83%, 4.72%, and 4.15%, respectively.Data source: Database of China Academy of Commerce
1. Aluminum foil productionChina is a major producer and supplier of aluminum foil. In recent years, with the accelerated landing of high-end aluminum foil production capacity, China's aluminum foil industry has developed rapidly, product quality has been continuously improving, and the industry is in an important period of development opportunities. According to data from the China Nonferrous Metals Processing Industry Association, China's aluminum foil production increased from 3.83 million tons in 2018 to 5.02 million tons in 2022, with a compound annual growth rate of 7.00%. The main driving force for growth came from the packaging and lithium battery sectors. Analysts from China Academy of Commerce predict that China's aluminum foil production will reach 5.37 million tons in 2023.Data source: Compiled by China Nonferrous Metals Processing Industry Association and China Commercial Industry Research Institute2. Aluminum foil production structureAccording to the classification of purposes, aluminum foil can be divided into packaging and container foil, air conditioning foil, battery foil, electronic foil, etc. From the perspective of production structure, the packaging and container foil production in 2022 was 2.45 million tons, a year-on-year increase of 4.3%, accounting for 48.80% of the total production; The production of air conditioning foil was 1.02 million tons, a year-on-year increase of 2%, accounting for 20.32% of the total production; The production of battery foil was 280000 tons, a year-on-year increase of 100%, accounting for 5.58% of the total production; The production of electronic foil is 110000 tons, accounting for 2.19% of the total production.Data source: Compiled by China Nonferrous Metals Processing Industry Association and China Commercial Industry Research Institute3. Market size of electronic aluminum foilWith the continuous acceleration of the global electronic and electrical industry development in recent years, and the rapid development of downstream consumer electronics, industrial control, 5G communication, new energy vehicles, wind power and photovoltaics, aerospace and other fields, the size of the electronic aluminum foil market has also grown. The "2022-2027 China Electronic Aluminum Foil Industry Outlook Forecast and Strategic Investment Opportunity Analysis Report" released by the China Academy of Commerce shows that the size of China's electronic aluminum foil market has increased from 2.59 billion yuan in 2019 to 4.5 billion yuan in 2022, with a compound annual growth rate of 20.2%. Analysts from China Academy of Commerce predict that the size of China's electronic aluminum foil market will increase to 5.09 billion yuan in 2023.Data source: Compiled by the Information Center of the China Electronic Components Industry Association and the China Business Industry Research Institute
4. Market size of electrode foilElectrode foil is a key material for aluminum electrolytic capacitors, with high technical content. Aluminum electrolytic capacitors have broad application areas in modern production and life. With the growth of demand, the scale of China's electrode foil market has been increasing year by year. The 2023 China Electrode Foil Industry Research Report released by the China Academy of Commerce shows that the market size of electrode foils in China has increased from 10.12 billion yuan in 2019 to 15.93 billion yuan in 2022, with a compound annual growth rate of 16.3%. Analysts from China Academy of Commerce predict that the market size of electrode foils in China will increase to 18.16 billion yuan in 2023.Data source: Compiled by the Information Center of the China Electronic Components Industry Association and the China Business Industry Research Institute5. Market competition patternThe market concentration of aluminum foil industry enterprises in China is not high. In 2021, according to the production of aluminum foil, the top five accounted for about 30.9%, with Dingsheng New Materials accounting for the highest proportion at 14%, followed by Changaluminum Co., Ltd. accounting for 5.5%, and Dongyangguang, Mingtai Aluminum, and Wanshun New Materials accounting for 4.5%, 4.2%, and 2.7%.Data source: Compiled by China Commercial Industry Research Institute6. Situation of listed companies in the industry
1. Aluminum foil consumptionBenefiting from the rapid growth in market demand for food and beverage, new energy vehicles, wind and photovoltaic, 5G communication, etc., the demand and consumption of aluminum foil have also increased accordingly. According to data from the China Nonferrous Metals Processing Industry Association, the consumption of aluminum foil in China increased from 2.68 million tons to 3.1 million tons from 2018 to 2022, with a compound annual growth rate of 3.68%. The China Academy of Commerce Industry Research predicts that the consumption of aluminum foil will maintain stable growth, with a consumption of about 3.21 million tons in 2023.Data source: Compiled by China Nonferrous Metals Processing Industry Association and China Commercial Industry Research Institute2. Packaging industryAluminum packaging products have excellent moisture resistance, oxidation resistance, and freshness preservation properties, which can extend the shelf life of products and are widely used worldwide. Data shows that in 2022, there were 9860 enterprises above designated size in China's packaging industry, and the cumulative operating revenue of enterprises above designated size in the national packaging industry was 1229.3 billion yuan. Among them, the manufacturing of metal packaging containers and materials completed a cumulative main business income of 150.052 billion yuan (accounting for 12.21%), a year-on-year increase of 5.17%.Data source: Compiled by China Packaging Federation and China Academy of Commerce3. Home appliance industryIn the field of household appliances, the production of digital televisions, air conditioners, refrigerators, washing machines, microwaves, rice cookers, vacuum cleaners, speakers, and household robots requires a large amount of aluminum electrolytic capacitors. After years of rapid development, China has become a major global manufacturer of household appliances. China has a rich variety of household appliances, reliable quality, and high cost-effectiveness. The production of major household appliances has jumped to the forefront of the world. The "2024-2029 China Small Home Appliance Industry Research and Development Forecast Report" released by the China Academy of Commerce shows that the total retail sales of China's home appliance market in 2022 were 835.2 billion yuan, a year-on-year decrease of 5.2%. Against the backdrop of gradually saturated household appliance consumption, the overall market size tends to develop steadily.Data source: Compiled by China Commercial Industry Research Institute
