Liang Xuan sees potential growth in the use of aluminium for car body panels: SMM

Liang Xuan, a senior aluminium analyst at Shanghai Metals Market, anticipates a growth in the use of aluminium in car body panels as there has been a fall in aluminium sheet cost, tightening government policies, and improving welding techniques. The potential for growth is significant given the current low level, said Mr. Xuan.

Automakers face hefty cost pressure to produce a full aluminium vehicle and fail to see profits until the car is sold at above RMB 600,000. Only medium and high-end automobiles can now be spotted with aluminium engine, trunk lids and doors, according to SMM.

China’s automobile market has been declining since 2018. In 2019, the production is expected to fall by about 13.5 per cent, with aluminium use in car panels slipping 3 per cent, said Liang to the delegates at the 2019 China New Automotive Materials Forum at China International Industry Fair in Shanghai on Thursday, September 19.

New energy vehicle emission standards which took effect in the middle of 2019 is however, expected to lift the vehicle production in China in 2020.

Electric vehicles will be the primary consumer of aluminium sheets as most EVs use aluminium engine hoods and fenders.

SMM data shows the global aluminium car panel capacity totals 2.7 million tonnes, of which 34% is in China.

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