Since the beginning of this year, China’s aluminum processing industry has maintained strong growth momentum, with both production and sales continuing to expand rapidly. During visits to Sichuan, Shandong, Henan, Zhejiang and other regions, reporters found booming demand for aluminum foil, aluminum plates, aluminum wire rods and related products, while production workshops across many aluminum processing enterprises remain fully occupied.

With orders growing rapidly, aluminum processing companies are busy expanding production capacity

According to industry sources, many Chinese factories are mainly producing aluminum foil stock for new energy batteries and double-zero foil used in food packaging applications. Company representatives stated that although processing fees this year have remained largely stable compared with the previous two years, order volumes have increased significantly compared with last year, and multiple aluminum foil production lines are currently operating at full capacity.

“Judging from current orders for the coming months, we are maintaining full-load production, with capacity utilization approaching 90%,” one company representative said.

Reporters also found that aluminum wire rod and aluminum tube manufacturers are experiencing similar growth in orders. At an electrical-grade aluminum rod production facility in Zhejiang Province, managers were busy arranging production schedules according to incoming orders. The company noted that demand has been exceptionally strong this year, with products often shipped out on the same day they are produced, resulting in almost zero inventory.

The company’s general manager explained that the products are mainly used in civil power cables and high-voltage transmission cables. “Under normal market conditions, this period should be the traditional off-season. However, since November last year, our monthly output has consistently remained around 7,000 tons.”

Strong downstream demand has also pushed many aluminum processing enterprises to accelerate expansion plans. To meet the rapidly growing needs of the new energy and high-end manufacturing sectors, companies have already begun a new round of capacity expansion.

Industry insiders pointed out that ongoing tensions in the Middle East have increased uncertainty across the global aluminum supply chain, leading to production cuts and tighter supply at some overseas aluminum plants. In contrast, China’s aluminum industry chain has demonstrated strong resilience and supply stability, enabling domestic manufacturers to absorb increasing volumes of overseas-transferred orders.

Statistics show that from January to April 2026, China’s cumulative exports of unwrought aluminum and aluminum products reached 2.053 million tons, up 8.9% year-on-year.

Driven by booming demand from emerging sectors such as new energy vehicles and energy storage systems, many Chinese aluminum processing enterprises are no longer satisfied with traditional large-scale manufacturing alone. Instead, they are significantly increasing R&D investment to enhance product value and technological competitiveness.

Industry sources also revealed that with the continued growth of lithium-ion battery demand and the gradual commercialization of sodium-ion batteries, many enterprises are stepping up investment in battery aluminum foil development. At one battery foil manufacturing plant, a batch of ultra-thin double-sided bright battery aluminum foil with a thickness of only 8 microns was being packaged for shipment.

The company’s technical manager stated that, based on downstream battery manufacturers’ requirements, the company is accelerating the development of new products focusing on key performance indicators such as compressive strength, elongation, and thickness precision.

Industry experts believe that industrial upgrading has become an inevitable trend for the aluminum processing sector. Chinese aluminum processors are rapidly transforming toward high-end applications such as new energy vehicles and energy storage batteries.

Fengda Gu, Chief Analyst at China Xin Futures, commented: “Taking aluminum foil materials used in new energy vehicles as an example, China’s high-end aluminum products are continuously evolving, from single-zero foil and double-zero foil to battery-grade aluminum foil materials. Product innovation and higher value-added products are also effectively improving profitability across midstream and downstream aluminum enterprises, with average profit margins showing clear growth.”