Overcapacity coupled with the impact of the epidemic The recycled aluminum industry is facing challenges

As a representative of green and circular economy, the recycled aluminum industry should be in the fast lane of rapid development and belong to the sunrise industry
in the sustainable development economy.
However, due to the excessive concentration of terminal demand in traditional industries, the imperfect scrap aluminum recycling industry at the raw material end, and the sudden impact of the epidemic, the recycled aluminum industry in 2020 is facing various new challenges, which is called the "eventful autumn"
of the industry.

With the increasing pressure on environmental protection in recent years, the restrictive policy on importing scrap aluminum has been upgraded year by year, but the specific quarterly approval issuance has no trace
.
From the unexpected relaxation in the transition stage in Q3 2019, to the limit exceeding expectations in Q4, and relaxing again in Q1 of 2020, what is the amount of approval in Q2-Q4 in 2020? Among them, because the new standard of "aluminum alloy raw materials for die casting", that is, imported aluminum scrap, was implemented on July 1, how will it be implemented?

If the 2020 import scrap approval circulated in the market is only 50% of 2019, the Q1 imported scrap approval is 300,000 tons, and the subsequent Q2-Q4 approval volume will not exceed 150,000 tons
on average.
In addition, due to the restriction of imported aluminum scrap, there was a large-scale disguised scrap aluminum import at the end of 2019 - the import volume of aluminum alloy ingots reached a new high
.

In addition to domestic and foreign recycled aluminum industry, it also needs to consider the impact
of imported goods.
Q2 If the approval of imported scrap aluminum is sharply reduced again, the impact of imported aluminum alloy ingots will be inevitable
.

Finally, considering the impact of the epidemic, the entire market is expected to start to recover
in March.
In Q1, a large number of imported aluminum scrap approvals were not affected by the epidemic, and there may be a concentrated arrival in March, resulting in the impact of domestic scrap, and the price of recycled aluminum may weaken slightly in March
.
At the same time, it is considered that the slowdown in GPD growth and the impact of the epidemic will not advance the final consumption policy, especially the stimulus policy for the automotive industry, and increase the strength
.

In 2020, in addition to facing trend problems of overcapacity and shortage of invoices, the traditional recycled aluminum industry will also be affected by scrap aluminum, various uncertain policies on the consumer side, coupled with the sudden outbreak of the epidemic, 2020 can be described as an "eventful autumn"
for the recycled aluminum industry.