The global economy is still in the doldrums, and the traditional manufacturing industry is facing many challenges. Aluminum profile industry has made great progress with the demand of real estate industry and industrial aluminium in the past. With the strengthening of the regulation and control of the real estate market in recent years, how can aluminium profile enterprises enjoy the same "good days" as in the past?
Recently, the reporter learned from the recently closed new products exposition of aluminium doors and windows curtain wall and the 20th National Annual Conference of aluminium doors and windows curtain wall industry that although the industry as a whole is facing the impact of imbalance in production and marketing, a number of leading enterprises in Foshan aluminium profile industry once experienced adverse growth through structure and market expansion, and did not feel too much "chill".
Distribution imbalance or market weakness
"China's aluminium production ranks first in the world for three consecutive years." Wang Weidong, a senior analyst at Beijing Antai Science and Technology Co., Ltd., recently said that the entire aluminium industry has been in full surplus, and the trend of surplus is intensifying.
Wang Weidong's statement reflects a fundamental aspect of the entire aluminium profile industry: huge capacity has not been adjusted with changes in the terminal market. According to the statistics and analysis of the International Aluminum Association, the output of raw aluminium in China in January 2014 was 1 938,000 tons, with a daily average of 62.5,000 tons. In the same period last year, the output was only 1,760,000 tons, with an average daily output of 56.8,000 tons.
High aluminium production has brought about a sustained decline in prices. Several industry insiders also told reporters that the poor domestic economy led to weak performance of the aluminum profile market. The release of pressure from China's smelting capacity in the first quarter worried the market, coupled with the original oversupply of supply, which made it difficult for prices to rise.
More than that worries entrepreneurs. The bad news from the real estate market at the end of February makes many businessmen who deal in building aluminium profiles feel "hard life". The head of a local construction aluminium company said that Societe Generale Bank's announcement of the suspension of financing related to the real estate supply chain had made him and many of his peers walk on thin ice.
Industrial transformation brings new opportunities
On February 8 this year, the four ministries and commissions of the State Council issued a circular on the promotion of new energy vehicles. The new energy vehicles will become one of the emerging industries that the country continues to promote. In terms of subsidies, the mentality of taking a step-by-step approach has also been changed to provide sustained subsidies for the development of the industry.
Many new industries, including new energy automobile industry, will provide new market demand for aluminium profile industry. Accordingly, aluminium profile enterprises must upgrade their level of quality, technology and other indicators to further transform.
Last year, Australia announced a 16% temporary punitive tariff on Chinese aluminium companies, affecting more than 700 aluminium companies. "The main impact is on construction aluminium enterprises in Guangdong Province." Lu Changqing, Executive Director and Vice President of Zhongwang Holdings Co., Ltd. of China, revealed that if there is no transformation, the price war in the industry will be overwhelming.
"We have basically withdrawn from building aluminium profiles in 2006." Lu Changqing said that in the face of such competition, Zhongwang of China has transformed itself into an industrial aluminium profile by upgrading its quality and technology.
Don't be afraid to compete with Buddhist Enterprises
Despite the current situation of the industry, the reporter found that the leading enterprises in Foshan Aluminum Profile Industry have achieved adverse growth in the past year through restructuring and expanding the market, and are still optimistic about the market prospects for the new year.
"Last year, the output of the whole industry increased by 10%, but the sales growth of leading enterprises is far more than that." Liang Haiming, regional manager of sales company of Guangdong Fengliao Aluminum Co., Ltd., said that the new concept is bringing new markets. "Phoenix aluminium materials focus on heat preservation, environmental protection, but also in line with the trend of development."
"One of the highlights of this year's sales is our cooperation with China Southern Railway in the carriage project." Wu Yingfen, manager of Guangdong Jianmei Aluminum Profile Factory Co., Ltd., said that industrial aluminium alone could bring about a lot of growth, even if it was not the construction aluminium industry in the past.
"Everyone either expands the channels, sinks the sales market into the third or fourth tier cities, or simply opens up another battlefield." Yang Guiyuan, business manager of Jinlan Aluminum Industry, thinks that even if the market for building aluminium profiles is not good, "If I used to make industrial aluminium, now I am expanding to the market for building aluminium profiles, do you think there is any growth?"