Is the aluminum extrusion market worth looking forward to in 2023?

The COVID-19 pandemic has had a huge impact on the global economy and society, leading to different challenges and changes in various industries. However, it has also driven digital transformation and innovative development in some #industries.

After three years of the pandemic, export restrictions, and surging raw material prices, it's no secret that the industry has faced many problems and pressures. As things begin to return to normal, is the #aluminumextrusion industry still worth looking forward to in 2023?

Real estate plays a significant role in China's economy. Data shows that China's aluminum extrusion production reached 22.02 million tons in 2021, an increase of 2.8% compared to the previous year. Among them, building #aluminum extrusion reached 13.8 million tons, accounting for over 63%. It's clear that the ups and downs of the real estate industry are crucial to aluminum processing companies. In 2022, due to the ongoing impact of the pandemic, the annual sales of the top 100 real estate companies in China fell to around 7.6 trillion yuan, a decrease of 40.53%. As a result, the production of building aluminum extrusion in China saw rare negative growth in 2021, with building aluminum formwork production falling sharply by 52.2%. How do you think the development of building aluminum extrusion will fare in 2023 after the pandemic ends?

Aluminum's lightweight, high strength, and excellent plasticity give aluminum alloys a wide range of applications. This is why, among many industries affected by the real estate market, the overall production capacity of the aluminum industry remains on an upward trend. Whether it's aluminum extrusion, #aluminumsheets, or foils, these aluminum processing products have far broader industrial applications than in the construction industry, especially in developed countries, where aluminum alloy accounts for over 70% of industrial applications.

The rapid growth of new energy #vehicles , #solar photovoltaics, and aerospace industries in China in 2022 has effectively stimulated the potential of the #aluminumprocessing industry. Data shows that every 1 kg of aluminum used in a car can reduce weight by about 2 kg. For every 10% reduction in weight, fuel consumption can be reduced by 6-8%, and emissions can be reduced by 4%. Aluminum alloy is an important material for achieving vehicle lightweighting, and it's widely used in the manufacturing of front and rear impact beams, battery trays, machine covers, fenders, swing arms for front and rear suspensions, subframes, sunroof rails, and more. However, aluminum extrusions for automobiles have higher requirements for quality, product control, technology, qualifications, production capacity, and funding than traditional building aluminum extrusions.

Aluminum extrusions are mainly used as photovoltaic component #frames and distributed photovoltaic power station supports in the photovoltaic industry. The rapid growth of the photovoltaic industry has also attracted many aluminum extrusion companies to enter the market. Data shows that in the first half of 2022 alone, the domestic extrusion capacity for photovoltaic products exceeded 2 million tons, becoming the undisputed hot spot of the industry in 2022. Industry research institutions predict that under the continuous promotion of the "dual carbon" strategy and the global energy structure transformation trend, the demand for photovoltaic #aluminumframes is expected to reach 2.02 million tons in 2023.

The aluminum extrusion market has been growing steadily over the years due to the increasing demand for lightweight, durable, and corrosion-resistant materials. The market is expected to continue its growth in the coming years, driven by the growing demand for aluminum extruded products in developing economies and the increasing use of aluminum extrusions in the automotive industry.

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