By Cao Yali, China Industrial News
Molten aluminum flows through the workshops, production lines are running at full capacity, and inventory levels are nearly zero. Since the start of this year, orders for products such as aluminum sheets, strips, foils, and wire have been booming, and aluminum processing production bases in Sichuan, Anhui, and other regions have been bustling with activity. Some companies achieved 42.3% of their annual profit targets in the first quarter alone, while some products are hauled away by trucks the moment they roll off the production line, resulting in a rare “zero inventory” situation.
Meanwhile, tensions in the Middle East have led to production cuts at some overseas aluminum plants, accelerating the shift of orders to China. Data shows that from January to April 2026, China’s cumulative exports of unwrought aluminum and aluminum products reached 2.053 million tons, an 8.9% increase year-on-year. Domestic demand is equally robust, with aluminum consumption in emerging sectors such as new energy vehicles, energy storage, and photovoltaics continuing to rise.
Is this boom in both production and sales a short-term windfall or a long-term trend? Can the aluminum processing industry break free from its fate of “earning meager processing fees”? How effective has the transition toward high-end products actually been? To address these questions, a reporter from China Industrial News interviewed Wang Benli, Director of the Non-ferrous Metals Industry Research Office at the Materials Industry Research Institute of the China Academy of Information and Communications Technology, and representatives from the China Nonferrous Metals Processing Industry Association, in an effort to uncover the truth and underlying concerns behind this current wave of enthusiasm in the aluminum processing sector.
Significant Progress in the Transformation and Upgrading of the Aluminum Processing Industry
“This boom is not a localized phenomenon. Since the beginning of this year, the supply-demand situation in China’s aluminum processing industry has improved significantly, with aluminum sheets, strips, foils, and wires performing particularly well, primarily driven by two factors: export growth and improved downstream consumption,” the China Nonferrous Metals Processing Industry Association stated in an interview with China Industry News.
In terms of exports, China’s aluminum processing industry holds a strong comparative advantage globally. In 2025, annual exports of aluminum materials and products accounted for approximately 19% of total aluminum production. From January to April this year, China’s combined exports of aluminum materials and products reached 3.14 million metric tons, an 8.4% year-on-year increase, with aluminum sheet and strip exports totaling 1.115 million metric tons, up 13.5%.
It is worth noting that this round of growth exhibits distinct structural characteristics. The China Nonferrous Metals Processing Industry Association pointed out, “China’s aluminum processing sub-sectors have diverged significantly. As the largest segment within the aluminum processing sector, aluminum extrusion continues to face substantial supply-demand pressures due to factors such as the ongoing downturn in the real estate market and fluctuations in the new energy vehicle and photovoltaic industries. The production and sales outlook remains grim, with some enterprises facing operational difficulties.” In other words, not all aluminum processing enterprises have benefited from this growth. Traditional sectors such as aluminum alloy doors and windows and architectural aluminum profiles continue to face significant pressure, while segments related to new energy, power generation, and exports—such as aluminum sheets, strips, foils, and wires—have become the main drivers of growth.
Behind this divergence lie the accumulated achievements of China’s aluminum industry’s transformation and upgrading over the years. In an interview with China Industry News, Wang Benli systematically outlined the progress and challenges of China’s aluminum industry’s transformation and upgrading.
Wang Benli noted that China’s aluminum industry has achieved significant breakthroughs in high-end, green, and smart manufacturing. The industry pioneered alumina production technologies such as the lime Bayer process and the ore-based Bayer process, and has built the world’s largest single alumina production line. The industrialization of high-end aluminum products is accelerating; by 2025, the domestic self-sufficiency rate for high-end aluminum alloys will increase, with the supply of high-strength, corrosion-resistant aluminum alloys for new energy vehicles growing by 45%. Large-scale electrolytic cells of 500 kA and above now account for over 85% of the market, while ultra-large 600 kA cells have begun large-scale deployment. Energy consumption on some demonstration production lines has dropped below 12,800 kWh/ton, far exceeding national energy efficiency benchmarks and leading the global trend toward improved electrolytic aluminum energy efficiency. The “Action Plan for Comprehensive Utilization of Red Mud” has been implemented with tangible results, and the proportion of iron recovery from red mud within total utilization has steadily increased. AI adoption accelerated with the launch of “Kun'an,” the non-ferrous industry’s first large-scale AI model, enabling intelligent management across the entire electrolytic aluminum production chain.
The China Nonferrous Metals Processing Industry Association also summarized three key directions for the transformation and upgrading of the aluminum processing industry during the 14th Five-Year Plan period: First, optimizing product structure to proactively adapt to changes in downstream consumption, with the “New Three Categories” of aluminum products moving toward a production scale of 10 million tons, rapid growth in industrial aluminum profile output, and a large number of high-tech products achieving import substitution; Second, green development: actively implementing the “dual carbon” strategy, promoting the integrated development of recycled aluminum and processing, establishing a closed-loop industrial chain for scrap aluminum collection, recycling, and high-value utilization, and constructing a large number of distributed rooftop photovoltaic power stations. To date, more than 100 national green factories have been established; Third, intelligent manufacturing: extensively introducing intelligent production equipment, advancing equipment upgrades and renovations, and establishing a large number of smart factories, 5G factories, and unmanned factories, which have significantly improved production efficiency and product quality.
Wang Benli also pointed out that the high-quality development of China’s aluminum industry still faces multiple unresolved challenges. Disruptive technologies such as inert anodes and low-temperature electrolysis remain in the laboratory or pilot-scale testing phase; the comprehensive utilization of red mud is still predominantly focused on low-end applications, and technologies for high-value-added utilization are still