Analysis of the impact of the epidemic on the aluminum industry

In terms of aluminum foil, at present, the production and operation of most domestic aluminum foil enterprises have continued the good development momentum of the previous year, with sufficient orders, especially the demand for food packaging foil, medicine foil and battery foil. However, in areas seriously affected by the epidemic, the efficiency of logistics and transportation has decreased significantly, and the transportation of materials and finished products has been affected to a certain extent; Some enterprises have stopped production of some or all production lines, and some enterprises with excellent management and control have basically carried out production in an orderly manner. In terms of export, in the first four months, the export of aluminum foil maintained growth. Although the EU imposed double anti tax on aluminum foil, the impact was relatively limited due to the relatively mild tax rate. In addition, affected by international conflicts, European energy supply was under pressure, there was still demand for China's aluminum plate, strip and foil products, and there was still growth potential in some emerging markets. Especially affected by the epidemic, the demand for pharmaceutical foil and packaging foil was still strong.

In terms of aluminum plate and strip, in the first quarter, the production and operation of most enterprises were normal, and the revenue of individual enterprises increased significantly compared with the same period of the previous year. However, since April, the situation of new orders received by enterprises was weaker than that in the first quarter. Compared with the same period of previous years, the production scheduling period of enterprises was shortened, and even individual enterprises were faced with the problem of insufficient orders. The operating rate of enterprise equipment (especially cold rolling line and finishing line) is insufficient, mainly producing hot-rolled coil. From the perspective of product segment market, the demand for aluminum foil blank and can material is good, while the performance of other products is average. It is expected that the situation will improve in the second half of this year, but most plate and belt enterprises are not as optimistic about the whole year as at the beginning of the year. Some enterprises said that it is difficult to complete the annual output growth target previously set. Due to the superposition of factors such as intensified market competition, rising processing costs, sharp fluctuations in aluminum prices and limited logistics caused by the epidemic, the uncertainty of the plate, strip and foil market has increased.

Compared with aluminum plate, strip and foil manufacturers, the domestic aluminum profile industry is seriously affected by the epidemic. A number of large domestic construction aluminum profile enterprises said that in addition to being affected by the macro-control policies of the real estate market, due to the recent serious epidemic situation in many regions in China and the continuous upgrading of control measures, many construction sites could not start construction. Enterprises had orders but no delivery date. Some construction aluminum profile enterprises said that due to the impact of epidemic control in some regions, enterprise orders decreased. In addition to the impact of aluminum price fluctuations, epidemic control and capital pressure have a great impact on the production and operation of enterprises, so they are not optimistic about this year's construction aluminum profile market. Although there is still an increase in the industrial material market, and some enterprises are also strengthening the development of the industrial material market and competing for new orders, the added value or gross profit of products has not increased. If individual products are not well controlled in production, marketing and finance, they may not make money.