As the global economy gets stronger, China’s aluminum processing and recycled aluminum industries are set for a lively second half of 2025. There will be big chances, but also some tough parts. Industry leaders are making smart plans to keep growing in this changing world.
First Half of 2025: A Tricky Market
In the first half of 2025, aluminum processing output grew a little. However, new factory building slowed down because of strong environmental rules and less land. The recycled aluminum industry made steady gains, but factories weren’t used to their full potential. This was mainly due to not enough scrap aluminum, import limits, and issues with early processing technologies.
Aluminum prices generally went up. The average price for electrolytic aluminum reached about 19,500 RMB/ton. Big aluminum processing companies saw their sales and profits increase. But recycled aluminum companies had mixed results. Larger companies made more money, while smaller and medium-sized ones faced more pressure.
What Will Drive Growth in H2 2025
Several important things are expected to shape the industry in the second half of the year:
l Good Economic Conditions: The global economy keeps getting better, and China’s economy is growing steadily (expected 5%-5.5% GDP increase). This will keep demand high for aluminum products in key areas like building, transport, and power.
l Smart Government Support: China’s “dual carbon” goals still guide the industry. While new electrolytic aluminum capacity is strictly controlled, the recycled aluminum industry gets strong government help. A big plan from the National Development and Reform Commission (NDRC) aims to double recycled aluminum output by 2027 compared to 2025. This shows big chances for the sector.
l Changing Market: Aluminum demand is expected to grow steadily. This is especially true for infrastructure projects, fast growth of new energy vehicles, ongoing rail development, and big power grid construction. For supply, new aluminum processing projects will start, and recycled aluminum production is set to increase, though scrap supply issues remain.
l New Technologies: Exciting new ideas in processing, like semi-solid forming, and better ways to recycle high-grade scrap, are moving the industry toward advanced and eco-friendly growth.
Dealing with Key Challenges
Even with good prospects, the industry faces big hurdles:
l Raw Material Worries: China relies heavily on imported bauxite, which means it can be affected by global politics and trade changes. Inside China, scrap aluminum supply is still limited due to low recycling rates and import restrictions.
l More Competition: It’s relatively easy to start, leading to many players, especially in lower-to-mid-end products. This causes strong price competition and less profit.
l International Trade Issues: Growing protectionism and trade barriers, like tariffs and investigations from big economies like the U.S. and EU, threaten China’s aluminum export markets.
l Environmental Rules: The “dual carbon” goals put big demands on energy efficiency for energy-heavy electrolytic aluminum production and recycling. This needs a lot of money for eco-friendly technologies.
H2 2025 Outlook: Production, Prices, and Industry Changes
l Production Plans: Aluminum processing output is expected to reach 29-30 million tons in H2, pushing annual production over 50 million tons. Recycled aluminum output is forecast to hit 5.7-6 million tons in H2, greatly helping to meet the NDRC’s annual goal of 11.5 million tons.
l Price Movement: Aluminum prices are expected to stay high and change often. Spot electrolytic aluminum prices will likely be between 19,000-20,500 RMB/ton, supported by costs and a tight supply-demand balance.
l Industry Getting Stronger: The sector is expected to see more companies merging or being bought. Larger companies will use their technology, money, and market strengths to gain more share, while some smaller companies might be acquired or leave the market.
Rongda Group: Helping Chinese Companies Succeed
To make the most of new chances and handle risks, companies need to improve their products by focusing on high-value items. They should manage costs better in buying and making things, find more buyers at home and abroad, invest more in new technology for lasting growth, and set up good risk plans to deal with market changes and trade issues.
Rongda Group is a key partner in this change. They are a top maker and solution provider in the metallurgy and casting industry, with over twenty years of proven experience. Rongda makes high-performance crucibles, casting ceramics, melting furnaces, and metal processing equipment. Their advanced products, especially the Scrap aluminum melting furnace and the Tower Melting Furnace, are specially designed to greatly improve the capabilities of Chinese aluminum processing and recycled aluminum companies.
The Scrap aluminum melting furnace is precisely built for best alloy control, flexible intermittent production, and large-capacity melting. This new solution effectively uses less energy and loses less material, while making products better and production more efficient. It also reduces the need for heavy labor.
The Tower Melting Furnace offers excellent operational efficiency, accurate alloy control, less downtime, and lower maintenance costs. It works with many fuel types and uses advanced low-speed burner technology to reduce oxidation. It also has smart automation with built-in PLC control systems.
Through these energy-efficient, high-performance, and precisely made melting solutions, Rongda Group directly helps companies achieve better production, improved metal quality, lower running costs, and better sustainability. This important partnership helps Chinese aluminum processing and recycled aluminum companies become much stronger competitors in a global market that is always changing.
Post time: Jul-30-2025