Industry Analysis & Industry Trends
Revenue for the Aluminum Smelting industry in China has been growing at an average annualized rate of 8.7% between 2008 and 2013 to $73.8 billion. As a basic metal, aluminum has a wide variety of applications within the Building Construction (IBISWorld industry report 4710), Automobile Manufacturing (3721), Power Grid Construction (4725), and packaging material industries. These downstream industries are strongly promoted by China's booming economy and rising urbanization.
With increasing downstream demand for aluminum products over the past three decades, aluminum-related industries developed rapidly, expanding output capacity as product prices appreciate. Alumina output, the major material for primary aluminum, has increased from 3.3 million tons in 1998 to an estimated 41.8.... purchase to read more
Industry Report - Industry Investment Chapter
For every dollar spent on labor in this industry, about $1.27 is spent on capital, indicating a high capital intensity. The rapid development of technology and systems has accelerated the automation of aluminum manufacturing. As a result, many advanced facilities, including smelting and transportation equipment, are used in this industry. Investment in facilities and equipment is therefore crucial for manufacturers in the industry to maintain competitive advantages.
In China, labor costs are much lower than in developed countries, despite the average monthly wages for individuals in the industry increasing from $443 in 2008 to a forecast $1025 in 2013. Therefore, the proportion of labor costs in industry revenue is low... purchase to read more