The aluminum processing industry has experienced robust production and sales momentum this year. On-site visits in Sichuan and other regions reveal strong demand for products such as aluminum sheet, strip, foil, and wire rod, with workshops operating at full capacity.
Orders are growing rapidly, prompting aluminum processing enterprises to expand production capacity. At a processing base in Guangyuan, Sichuan, molten aluminum weighing over seven tons per crucible continuously flows into melting furnaces. The factory primarily produces aluminum foil blanks for new energy batteries and double-zero foil for food packaging. According to relevant personnel, processing fees this year remain largely consistent with the previous two years, but orders have increased significantly compared to last year. Currently, all 13 aluminum foil casting and rolling production lines are operating at full capacity.
Wu Hexing, Executive Deputy General Manager of Sichuan Guangyuan Wanshun Zhongji Aluminum Co., Ltd., stated that the first quarter achieved 42.3% of the annual profit target. Orders for the coming months indicate that production is at full capacity, with utilization rates nearing 90%, meeting the project's investment expectations.
Visits also show that orders for aluminum wire rod and tube processing enterprises are similarly increasing. In a workshop producing electrical round aluminum rod in Guangyuan, Sichuan, manager Wu Jiajia is busy directing workers to schedule production based on orders. He mentioned that orders this year are particularly abundant, with daily production being shipped out on the same day, resulting in near-zero inventory levels.
Wu Jiajia, General Manager of Sichuan Jiuda New Materials Co., Ltd., noted that the products are mainly used in civil cables and high-voltage transmission cables. Under normal market conditions, this period should be a sales off-season. However, from November last year to the present, monthly production has reached 7,000 tons.
The booming downstream orders have accelerated the development pace for many aluminum processing enterprises. To meet the continuously growing demand from new energy and high-end manufacturing sectors, companies have initiated a new round of capacity expansion.
Industry insiders indicate that tensions in the Middle East have heightened uncertainty in the global aluminum supply chain, leading to production cuts and tightened supply at some overseas aluminum plants. In contrast, China's aluminum industry chain has demonstrated strong resilience and stability, effectively absorbing orders shifted from overseas. Data shows that from January to April 2026, China's cumulative exports of unwrought aluminum and aluminum products reached 2.053 million tons, a year-on-year increase of 8.9%.
Faced with strong demand from emerging sectors like new energy vehicles and energy storage, many domestic aluminum processing companies are no longer content with traditional large-scale production. Instead, they are increasing research and development investments to enhance product added value.
At an aluminum processing enterprise in Guangyuan, Sichuan, aluminum round bars undergo processes such as melting, casting, extrusion, and cutting to be processed into aluminum valve bodies for new energy vehicle thermal management systems. Manager Qin Li mentioned that last year, the company observed significant demand for lightweight precision components in the new energy vehicle industry. After evaluation, a 4,000-ton reverse extrusion press was recently installed for deep processing of aluminum round bars.
It is understood that with the growth in lithium-ion battery demand and the emerging application of sodium batteries, many enterprises are also increasing investment in the R&D of battery aluminum foil. In the production workshop of a battery aluminum foil company in Anhui, batches of ultra-thin double-sided battery aluminum foil with a thickness of only 8 micrometers are being packaged. Sun Hui, head of the technical department, stated that they are accelerating the development of new products based on downstream battery manufacturers' requirements for technical indicators such as compressive strength, elongation, and thickness uniformity of aluminum foil.
Sun Hui, Technical Department Head of Anhui Huaibei Zhongji Battery Foil Technology Co., Ltd., said that R&D investment in the first quarter increased by approximately 24.2% year-on-year. The R&D focus is also quite targeted, emphasizing high performance and ultra-thin characteristics. Ultra-thin designs aim to reduce battery volume and increase capacity, aligning with the trend toward lightweight and compact solutions.
Industry experts note that industrial upgrading is an inevitable trend in the aluminum processing sector. Aluminum processing enterprises are accelerating their transformation toward high-end fields such as new energy vehicles and energy storage batteries.
Gu Fengda, Chief Analyst at Guosen Futures, cited aluminum foil materials for new energy vehicles as an example, noting that China's aluminum industry is continuously iterating and upgrading its high-end products, from single-zero foil and double-zero foil to battery-grade aluminum foil materials. Product innovation and high-value-added offerings are effectively improving the profitability of midstream and downstream enterprises in the aluminum industry chain, with average profit margins showing significant growth.
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