Aluminum casting refers to the equipment and components of pure aluminum or aluminum alloy obtained by casting processing. Generally, the sand mold or metal mold will be heated to liquid aluminum or aluminum alloy poured into the mold cavity, and the various shapes and sizes of aluminum parts or aluminum alloy parts are usually called aluminum die casting.

Die casting in our country manufacturing industry market concentration is low, most enterprise production scale small, scale advantage of enterprise in the industry is relatively small, only a handful of firms with new product research and development, the use of new materials, mold design and manufacturing, precision die casting machine, CNC finishing etc multiple production overall manufacturing capacity, therefore, It is difficult for the industry as a whole to obtain industrial chain synergies in production and research and development, which is not conducive to the improvement of the overall competitiveness of the industry.

In recent years, with the development of the global economy, the demand for precision die castings in many fields such as automobiles, 3C products, communication infrastructure equipment, household appliances, medical equipment and so on has steadily increased. The metal materials used in die casting are mainly aluminum alloy, magnesium alloy, zinc alloy and copper alloy. Because aluminum alloy die casting is widely used in the automobile industry, it accounts for a high proportion in the die casting. At present, developed countries die casting market maturity is higher. With the production capacity of more and more high-end manufacturing industries shifting to China, China's die casting industry is also continuously upgrading its structure in the process of growth, and the proportion of precision die casting is gradually increasing. As one of the most important application areas of die casting products, a large number of precision die castings are used in automobile engines, transmissions, transmission systems, steering systems and electronic control systems. The demand of auto parts will greatly affect the development prospects of the die casting industry as a whole.

Aluminum castings are widely used and have excellent performance, so the market demand is broad. Especially in the automobile industry, the application of aluminum casting accounts for the largest proportion. During the 14th five-year plan, our country will vigorously develop automobile industry, promote new energy vehicles and lightweight vehicles development, so is expected to see the market demand for aluminum castings increase steadily in the next five years. According to the "Competitive Pattern Analysis and Development Potential Forecast Report of China Aluminum Casting Industry 2022-2027" by ZhongResearch Puhua Industrial Research Institute, statistical analysis shows that:

I. Output analysis

China Casting Association released statistics on China's casting industry, in 2017, China's total production of all kinds of castings was 49.4 million tons, an increase of 4.7% compared with 2016. Among them, aluminum (magnesium) alloy castings increased by 5.8% to 7.3 million tons in 2017 due to the demand for lightweight. In 2018, the total production of all kinds of castings in China was 49.35 million tons, basically unchanged with that in 2017, among which the proportion of aluminum (magnesium) alloy castings was reduced to 14.5%, reaching 7.156 million tons. According to the development of aluminum (magnesium) alloy casting market in China in 2019, it is estimated that the total production of all kinds of castings in China in 2019 will decrease to about 7.048 million tons.

Chart: Aluminum (Magnesium) alloy casting production in China, 2017-2019

Data source: China Foundry Association, ZhongResearch Puhua Industrial Research Institute

2. Analysis of the supply situation of major enterprises

From the global scale, die casting industry is a fully competitive industry. The number of die-casting enterprises in developed countries is small, but the scale of a single enterprise is larger, the degree of specialization is higher, and it has strong advantages in capital, technology, customer resources and other aspects. RYOBI Corporation of Japan and DGS Corporation of Switzerland are the most representative automobile die casting enterprises in the world. Due to the leading advantage in equipment and technology level, enterprises in developed countries generally focus on the production of automobile, aviation and other high-quality and high value-added die castings, leading most domestic automobile die casting enterprises in technology and production scale.

At present domestic die-casting industry concentration is low, the existing die casting and die casting associated enterprise is about more than 12600, more than accounted for about 70% of the production of die casting enterprise, the enterprise mainly distributed in guangdong, jiangsu, zhejiang, chongqing, shandong and other places, large scale and professional enterprise most concentrated in the pearl river delta and the Yangtze river delta region, And large die casting enterprises account for only about 10%. There are two main types of enterprises with large production scale of automobile die-casting parts in China. One is the supporting enterprises of automobile enterprises, which belongs to the group companies in the downstream industry. The other is the independent automotive precision die casting production enterprises, specializing in the production of automotive precision die casting, and downstream customers have established a relatively stable long-term cooperative relationship. With the development of automobile industry and automobile lightweight trend, the good industrial application prospect of light alloy precision die casting such as aluminum alloy and magnesium alloy is attracting new competitors, including some large foreign-funded die casting enterprises. With the development of the industry, the future market competition will become increasingly fierce. Local automobile precision die casting production enterprises must constantly improve the technical level, introduce advanced equipment, expand the scale of production in order to maintain their own market position in the industry.

Iii. China Aluminum Casting Production forecast, 2020-2025

In 2020, due to the impact of the epidemic, aluminum castings in China will be greatly affected, and the output is expected to decrease.

Chart: Aluminum (magnesium) alloy casting production in China, 2020-2025

Data source: ZhongResearch Puhua Industrial Research Institute

For more detailed analysis of aluminum casting industry, you can click on the "Competitive Pattern Analysis and Development Potential Forecast Report of China Aluminum Casting Industry 2022-2027" by ZhongResearch Puhua Industrial Research Institute.