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Big coffee talk: the problems faced by the recycled aluminum industry and the future of China or consider the export of waste aluminum.

Times:2024-06-25

On April 24, in the main forum of the 2024SMM (19th) Aluminum Conference and the first Aluminum Industry Expo hosted by SMM, the round table forum hosted by the former vice president of China Nonferrous Metals Industry Association/honorary president of Shandong Aluminum Association, the theme of "Looking at the development opportunities of the global aluminum market from the perspective of products, production capacity and supply chain" was centered, four guests Huo Bin, Vice President of China Nonferrous Metals Industry Association/Chairman of Yadian Holding Group Co., Ltd., Wang Zengchao, President of Chongqing Shunbo Alloy Co., Ltd., Zhang Wenzhang, General Manager of Henan Shenhuo Coal and Electricity Co., Ltd., and Chinalco High-end Manufacturing Supply Chain Song Jin, deputy general manager of Management Co., Ltd., had a lively discussion and expressed their views.

Wang Zengchao, President of Chongqing Shunbo Alloy Co., Ltd.

The host asked: The recycled aluminum industry is still facing many problems. Although there is a great demand, how to deal with it when policies, standards, and preparations are not sufficient?

Wang Zengchao: due to the shortage of raw materials, the recycled aluminum industry is more dependent on imports, and the import volume in the first quarter of this year is also very large. The shortage of recycled materials will still exist for a long time. After the social inventory and social scrap inventory fully meet the market demand for cast aluminum alloy, it may be used at the same level before it can be truly achieved. Otherwise, the price of cast aluminum alloy will rise due to the shortage of cast aluminum alloy, and the material of deformed alloy will naturally be used. With more and more domestic waste markets, the trend of shortage of raw materials may be gradually broken, and the consumer market is larger than the new market.

In terms of industrial policy, it is really necessary for industry associations and the government to fully solve the recycling system. Some time ago, there were reverse invoicing by enterprises and reverse invoicing by individuals. The implementation rules have not yet come out. If resolved, it will bring benefits to the development of the entire industry.

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The host asked: the combination of primary aluminum enterprises and recycled aluminum enterprises is a good direction in the future. What do you think?

Wang Zengchao: The integration of deformed alloys will be beneficial to the development and awareness of the entire recycling industry, including the promotion of industry policies, leading the industry to develop in a more standardized direction.

Moderator A: 10 or 20 years later, China should consider the export of secondary resource waste aluminum, and it is likely that foreign countries will export waste aluminum to China. To transfer to Yunnan, this is not only the consideration of upstream raw materials, but also the transfer of our export destination. We have two strategic adjustments, one is to adjust our energy structure, and the second is to adjust our export destinations, that is, to South Asia and Southeast Asia. South Asia and Southeast Asia have a more than 2 billion population. If we draw a circle in Yunnan, Yunnan is basically in the center. Therefore, this round of transfer will have a strategic role in the future in 10 or 20 years.