Aluminium rolled product suppliers seek a pie of China's auto panel trade

Aluminium end use applications are growing and how. In Asia, China, as always, is leading the league as the most promising market of aluminium rolled products, providing the much needed traction to the entire aluminium value chain. The sectors that are creating maximum demand are beverage packaging and automobiles.

Automobiles, especially, is zooming ahead to create major business opportunities across the world. China being the largest auto market in Asia, aluminium makers are eyeing a major chunk of it. Emission rules being made stricter, aluminium die casting manufacturers and rolled product suppliers are lining up to sell their products to the Chinese auto makers.

Kobe Steel will launch as early as March an aluminium automotive panel plant in Tianjin, where Toyota Motor operates joint-venture facilities. The plant will process aluminium sheets rolled in Japan. It will be the second foreign-operated Chinese plant to make aluminium panels for vehicle exteriors, after a facility launched in 2014 by Novelis.

Chinese aluminium rolled product manufacturers, too are eager to seize the day. Seven odd companies, including Southwest Aluminum (Group) and Nanshan Light Alloy, are looking to supply automotive aluminium panels that homegrown automakers could employ first.

Deloitte Tohmatsu Consulting projects Chinese demand for aluminum panels to reach 600,000 tons in 2020 -- a sharp increase from the less than 100,000 tons estimated for 2015. "This is a once-a-century business opportunity," an industry insider said.