Big talk: 2023 Aluminum Profile Foreign Trade Situation, New Growth Points, Overseas Strategies and Directions

Origin:SMM2023-06-06 19:39

https://news.smm.cn/news/102238843

SMM6, May 5: At the 2023 SMM (the 18th) International Aluminum Summit - Industrial Aluminum Extrusion Application Forum hosted by SMM, Liang Guanrong, the director and vice president of Fen'an Aluminum Co., Ltd., and Zhang Jianping, the technical director of Jiangxi Jinke Photovoltaic Materials Co., Ltd., made comments on the aluminum profile foreign trade situation, new growth points, overseas strategy and direction in 2023, An analysis was conducted on hot topics such as whether policies will be introduced after setting up a factory in Vietnam, and whether Chinese enterprises will also be sanctioned.

Pan Baowen, Deputy General Manager of Guangdong Golden Aluminum Light Alloy Co., Ltd.:

What is the situation of aluminum profile foreign trade in 2023 and are there any new growth points?

Liang Guanrong, Director and Vice President of Fen'an Aluminum Co., Ltd.: Compared with 2023 and 2022, and even pushed to 2021, due to the continuous impact of the Russo-Ukrainian War, not only the aluminum industry, but also all other industries that export to the European market will decline in 2022, and still decline this year. The war situation is difficult to resolve in a short period of time, and it is difficult to see significant changes in the European market in the short term. Although the global epidemic lockdown has been lifted in 2023, demand has already entered a normal equilibrium state, so it will not rise like the data in 2022. Countries led by the United States continue to exert pressure on China's industries, not only in the high-tech industry, but also in many traditional industries, even extending to various service-oriented industries.

Based on the expectations of the global economy in 2023, the global economy is slowing down. Although China's GDP growth is optimistic, other countries are generally declining. Therefore, the above factors are the main reasons for the decline in aluminum profile exports in the first quarter of 2023.

New growth points:

① It is necessary to go out, participate more in international exchanges, explore new channels, and meet new customers;

② Closely follow national policies, such as the the Belt and Road, the profiles of Fen'an Aluminum used by Indonesia's high-speed railway benefit from the country's going global;

③ Develop emerging country markets with growth points in the future, such as ASEAN, the Philippines, Indonesia, Brazil, Saudi Arabia, etc;

④Many foreign industries are ahead of China, such as photovoltaic, new energy, and new materials, which have a relatively large market space and belong to segmented markets. Targeted expansion is needed based on the actual situation of enterprises.

Pan Baowen, Deputy General Manager of Guangdong Golden Aluminum Light Alloy Co., Ltd.:

What are the future strategies and directions for Jingke's overseas policies?

Zhang Jianping, Technical Director of Jiangxi Jinke Photovoltaic Materials Co., Ltd.: As for going to sea, the entire aluminum extrusion industry is facing geopolitics, especially the Russo-Ukrainian War, including the anti-dumping in North America. At present, the Nordic Zero Carbon Industry Act has been postponed for three years due to the epidemic situation. After entering the implementation phase, it has caused a lot of trouble to domestic profiles, especially a lot of tariffs; The reason for the lack of clarity is that Xinjiang aluminum cannot be used, and original aluminum cannot be used, which has already formed a consensus in the automotive and photovoltaic industries. At present, there are two directions for aluminum extrusion to go to sea. One is that many profiles have been landed in Vietnam with relatively good profits. In addition, Malaysia, which is a relatively rich producer of recycled aluminum, copper, and tin, is a path that Chinese enterprises need to take in order to avoid geopolitics, North American anti-dumping, and the Nordic Zero Carbon Industry Law, and to develop towards developing countries such as Vietnam and Malaysia; Before 2000, domestic investment promotion was needed, and currently, it is necessary to go out and do foreign investment.

Pan Baowen, Deputy General Manager of Guangdong Golden Aluminum Light Alloy Co., Ltd.:

Chinese enterprises are going global, such as setting up factories in Vietnam. It is understood that the United States has formed teams in Southeast Asia, Vietnam, and Thailand to investigate the Chinese industrial chain. Will there be any policies in the future that China will also be sanctioned in Chinese enterprises, and the progress of this path will be hindered? How do you view it?

Liang Guanrong, Director and Vice President of Fen'an Aluminum Industry Co., Ltd.: The international environment is constantly under pressure, but the entire aluminum supply chain is still concentrated in China. Enterprises need to pay attention to the international situation and the country when formulating long-term strategies. In terms of the international situation, Chinese Century's rise is unstoppable as a whole, and it is not a country or a country that can suppress it. China can break through in terms of size, especially the proportion of manufacturing industry in the world. On the domestic side, the entire aluminum industry manufacturing is the most complete globally. It is not practical to bypass the Chinese aluminum industry to develop the global aluminum industry. In terms of strategy, going out is the only way,

① In terms of the overall industrial layout, the transportation costs and export tariffs of aluminum profiles are actually the highest. To bypass these two highest costs, it is most appropriate to establish a factory on site;

②In terms of production costs, the main factor is labor costs. From the perspective of Vietnam, labor costs still have certain advantages, but also have risks. The training, management, and culture of local labor are not the same;

③There are opportunities in the market. The Southeast Asian market is already relatively large, radiating beyond developed Western countries through Southeast Asian bases, and the local Southeast Asian market can also absorb most of the production capacity. Based on these points, enterprises with the ability, technology, and talent reserves can still go global.

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