China's aluminum industry up by 66.8%

It is expected that China will produce about 17 million tons this year, a hike of 20 percent from the previous year. But that record comes at a steep price. Aluminum production not only consumes about 8% of all electric power in China, but is also responsible for large amounts of carbon dioxide (CO2) emissions. And the electricity needed to power the industry has a multiplier effect on pollution problems because 70% of China’s electricity comes from coal, a major contributor of CO2 emissions.
Aluminum is used in a wide range of markets such as aerospace, automotive, construction, electrical and packaging. Additionally, industry players are able to offer additional services such as fabricated products like alloys made from aluminum. This means that industry players are less reliant on revenues from one specific market, which weakens buyer power somewhat.
Major players in the Chinese market include Aluminum Corporation of China (Chalco), Qingtongxia Aluminum Plant, Yichuan Yugang Longquan Aluminum Co and Yunnan Aluminum Plant. Xinjiang is becoming the new primary aluminum production base. Rivalry within the aluminum industry has increased further during the economic downturn. In 2011, the price of aluminum rose. An increase in usage in China coincided with an improvement in the US automobile and aerospace industries, causing an increase in demand for aluminum, meaning competition between industry players decreased somewhat.

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