On May 31st The China Purchasing Managers Index was compiled by the Service Industry Opinion Center of the National Bureau of Statistics and the China Federation of Logistics and Purchasing. It showed that the purchasing managers’ index (PMI) of China’s manufacturing industry in May was 51.0%, down 0.1 percentage points compared to the previous month. The overall non-manufacturing business activity and PMI production indexes were 55.2 percent and 54.2 percent, respectively, up 0.3 and 0.4 percentage points from the previous month. This shows that China’s economy continues to expand steadily. Remarkably, commodity prices continued to rise, and there appears cost pressure downstream.
The Chinese Ministry of Ecology and Environment recently stated that it plans to launch an online national carbon marketplace before the end of June 2021. The media also reported that the National Carbon Market system has already begun to be tested and all participants are preparing for the launch of the National Carbon Exchange, from Shanghai to Wuhan.
Last week The policy level of the Standing Committee of the State Council of the People’s Republic of China has implemented and stabilized the price two times in a row. and proposed to increase supervision and review the situation. As a result, the overall price of bulk products decreased. meanwhile Power shortage in Yunnan province, As a result, local aluminum factories had to cut their production by 40%, thus increasing the supply-side impact.
News of Corporates
On May 21, Mr. Ye Wei, Director of Science and Technology Management Department of China Commercial Aircraft Co., Ltd., and his team traveled to the Nanshan Aluminum Plant for inspection and issuing permits for the Civil Project, Aircraft Aluminum Alloy to Nanshan.
In April China’s output of aluminum processed products increased by 11.5% compared to the budget. and grew by 38.4% compared to the same period last year. This is a breaking record in the past. The plant concluded a plan to increase the yield of alloy 2XXX plates, resulting in a 6.5 percentage point increase in yield compared to baseline. In addition, The rate of finished goods production also increased. This results in a total metal savings of 1,783.5 tons.
According to the latest data released by Alphaliner, as of May 2, there were 6,204 container ships in operation worldwide, with a total capacity of 24.571 million TEU, equivalent to 296 million DWT. Among them, the total capacity of the top three liner companies accounts for 45.14% of the global market. The top three shipping companies in the world are Maersk shipping (4,121,800 TEU, accounting for 16.77%), MSC Shipping (3,920,800 TEU, accounting for 15.96%), and CMA CGM group shipping (3,049,700 TEU, accounting for 12.41%).
Domestic Market Status
In 2020, the demand for aluminum alloy ABS sheet for the automotive industry in China is 380,000 tons and is expected to increase to about 410,000 by 2021 based on the production schedule of ABS sheet manufacturers for the automotive industry. in the country over the past two years. Domestic production will reach 186,000 tons by 2020, and the proportion of self-supply will increase by 48.95%. ABS aluminum alloy sheet production is expected to reach 220,000 by 2021 and on the basis of market demand. It is estimated that domestic ABS sheet output has the potential to grow by nearly 200,000 tons in 2020-2021.
China International Aluminum Industry Exhibition and Service will be held in Shanghai New International Exhibition Center from July 7-9, 2021, with about 600 leading companies from more than 30 countries and regions participate in the exhibition of products and services in the aluminum industry supply chain from upstream to downstream. including raw materials semi-finished products Applied products and related machinery equipment including various consumable products.
NILO SHANGHAI TEAM