Aluminum’s Path Changes

Aluminum’s Path Changes: Exploring the Extensive Applications of Aluminum as Export Tax Rebates Are Eliminated

China’s Ministry of Finance and the State Administration of Taxation announced the elimination of export tax rebates for aluminum and other products, including major aluminum profiles, sheet, strip, foil, and bar, effective December 1st. As the global leader in the aluminum industry, China’s aluminum exports reached 5.287 million tons in 2023, accounting for approximately 35% of global trade. In terms of production, China accounts for 59% of global primary aluminum production, approximately 66% of aluminum products, 60% of electrolytic aluminum, and nearly 60% of smelted aluminum.

I. Background and Impact of the Adjustment to the Aluminum Export Tax Rebate Policy

Against the backdrop of the evolving global economic landscape and strategic resource allocation, my country has adjusted its aluminum export tax rebate policy. This move was not accidental but was based on multiple considerations. In recent years, with the rapid development of the domestic aluminum industry, aluminum production has continued to grow. While meeting domestic demand, exports have also accounted for a significant portion.

However, the aluminum industry is resource- and energy-intensive, consuming significant amounts of electricity and other energy resources during production. In some regions, overcapacity in aluminum production is emerging. The elimination of the aluminum export tax rebate policy aims, on the one hand, to guide the aluminum industry to focus more on balancing supply and demand in the domestic market and reduce resource waste and environmental pressures caused by excessive exports. It also encourages aluminum companies to accelerate their transformation and upgrading, increase product value-added, and shift from simple production expansion to quality and efficiency improvements.

This policy adjustment has had a direct impact on aluminum companies’ export profits. Companies that previously relied on export tax rebates for price advantages are facing rising cost pressures, forcing them to re-evaluate their market positioning and development strategies, thereby promoting structural optimization and sustainable development across the aluminum industry.

II. Aluminum’s Outstanding Performance and Material Properties

Physical Performance Advantages

Aluminum possesses a range of unique physical properties that distinguish it from other materials. Its low density, approximately one-third that of steel, gives aluminum products a significant advantage in lightweighting. In the transportation sector, such as automobiles and aircraft, the use of aluminum can effectively reduce the weight of the entire vehicle, thereby reducing energy consumption and improving fuel efficiency and range. For example, in automobile manufacturing, aluminum alloy bodies not only reduce vehicle weight but also enhance vehicle handling. Aluminum also has excellent electrical conductivity, second only to a few metals like silver and copper. Aluminum wire and cable are widely used in power transmission, reducing costs and improving resource efficiency while maintaining adequate electrical conductivity. Aluminum also has excellent thermal conductivity, making it crucial in heat exchange equipment like heat sinks and heat exchangers, quickly transferring heat and ensuring proper operation.

Chemical Properties

Aluminum exhibits excellent corrosion resistance. At room temperature, a dense aluminum oxide film quickly forms on the aluminum surface. This film effectively prevents further chemical reactions with oxygen and moisture in the external environment, thereby protecting the aluminum substrate from corrosion. This corrosion resistance makes aluminum products widely applicable in construction, outdoor facilities, and other fields. For example, aluminum alloy doors and windows can maintain their appearance and performance for years in buildings, eliminating the need for frequent replacement. Aluminum also possesses a certain degree of chemical stability. In certain acidic and alkaline environments, as long as the concentrations are not excessively high, aluminum can remain relatively stable. This opens up potential applications in industries such as chemicals and food processing. For example, aluminum storage containers and reactors can be used in specific chemical processes.

III. Aluminum’s Widespread Industrial Applications

Key Applications in Aerospace

Aluminum is an indispensable material in the aerospace industry. Due to its lightweight and high-strength properties, aluminum alloys are widely used in the manufacture of aircraft fuselages, wings, landing gear, and other components. For example, modern commercial aircraft fuselages utilize a large amount of aluminum alloy. Through appropriate alloy design and processing techniques, aluminum alloys meet the stringent requirements of high strength, low density, and fatigue resistance faced by aircraft during high-altitude flight.

In the aerospace sector, aluminum is also used in the manufacture of components for satellites, rockets, and other spacecraft. Its excellent processing properties enable the precise manufacture of complex aerospace components. Furthermore, aluminum’s stable performance in the space environment ensures the long-term and reliable operation of spacecraft. Furthermore, aluminum’s thermal conductivity is crucial in spacecraft thermal management systems, helping to dissipate heat generated within the spacecraft and maintain normal operating temperatures. Aluminum Application Trends in Automotive Manufacturing

With the automotive industry’s pursuit of energy conservation, emission reduction, and lightweighting, aluminum is increasingly being used in automotive manufacturing. Aluminum alloy engine blocks, cylinder heads, and other components are gradually replacing traditional cast iron parts, reducing engine weight while also improving heat dissipation and power performance. Aluminum alloy body frames significantly reduce vehicle weight while ensuring strength and safety, thereby reducing fuel consumption and exhaust emissions. For example, some high-end electric vehicle brands make extensive use of aluminum alloys to improve vehicle range and handling.

Aluminum auto parts also offer advantages in recycling, aligning with the automotive industry’s commitment to sustainable development. With continued advancements in aluminum processing technology and further reductions in costs, the proportion of aluminum used in automotive manufacturing is expected to continue to increase.

IV. Aluminum’s Expansion in Emerging and Civilian Applications

Innovative Applications of Aluminum in Electronics

Aluminum is also finding innovative applications in the electronics sector. Aluminum-based circuit boards are widely used in electronic devices. Their excellent electrical conductivity and heat dissipation meet the operational requirements of components such as electronic chips, ensuring stability under high-frequency and high-power operation. In consumer electronics like smartphones and tablets, aluminum alloy casings not only offer an aesthetically pleasing appearance but also protect internal electronic components and dissipate heat. With the development of 5G communication technology, the heat dissipation requirements for electronic devices are further increased, making aluminum even more crucial in heat dissipation solutions. For example, aluminum heat sinks, heat pipes, and other cooling components can effectively address the heat dissipation issues of 5G devices, ensuring their proper operation and performance.

Aluminum Products in Architecture and Everyday Life

Aluminum products are ubiquitous in the construction industry. Aluminum alloy doors and windows offer excellent airtightness, watertightness, and sound insulation, improving energy efficiency and comfort. Aluminum curtain walls add a unique aesthetic to modern architecture, and their lightweight design reduces the burden on the building structure. In everyday life, aluminum kitchenware, tableware, and furniture are also popular among consumers. Aluminum kitchenware, with its excellent thermal conductivity and corrosion resistance, meets the needs of home cooking. Aluminum furniture, with its lightweight and durable design, has earned a place in modern home decor. In addition, aluminum is also widely used in the packaging industry. For example, aluminum foil is used in food packaging, which can effectively isolate oxygen, moisture, etc., extending the shelf life of food. Aluminum foil packaging also has good plasticity and aesthetics, making it convenient for food storage and sales.