This year, the government’s focus has been on stabilizing growth, adjusting structure, transforming and upgrading, and reducing costs and increasing efficiency. In 2015, both the export and domestic demand of aluminum alloy die castings fell, and the profit of aluminum alloy die casting plants decreased. Although it was not such a significant difficulty, it was also affected by the economic downturn. It should be noted that the problems encountered by aluminum alloy die-casting plants are not cyclical problems. After a few years and the economy improves, this situation will not improve again, because the bigger problem of aluminum alloy die-casting plants is The problem of industrial adjustment, not the problem of bad economic situation.
The problems of aluminum alloy die-casting plants are very similar to the problems of China’s economy. The performance is four drops and one rise, that is, the economic growth rate declines, the factory price of industrial products declines, the profitability of aluminum alloy die-casting plants declines, the fiscal revenue growth rate declines, and risks occur. The probability of rising, the central government judges that the economic situation in 2016 is a weak recovery.
Although the problems encountered by aluminum alloy die-casting plants are not as serious as steel mills, and there is a serious overcapacity, the surplus still exists, but it is much better than steel mills, and the surplus is mainly concentrated in low-end aluminum alloy die-casting parts. In addition, high-end aluminum alloy die castings are not surplus, but because of the higher access, the market is vacant.
The way out for aluminum alloy die-casting plants is actually the way out for China’s manufacturing industry. It is to abandon the vicious competition of low-end aluminum alloy die-casting parts and move to the high-end aluminum alloy die-casting parts market in order to seek higher premiums and seek higher profits. . In the future economic development process, the total demand will still grow, but it will not grow in the low-end sector. The low-end sector has already started vicious competition with overcapacity, and the high-end sector must be able to maintain the premium.
If aluminum alloy die-casting plants cannot enter the high-end aluminum alloy die-casting market, improve their own technology and product quality, but stay in the low-end market and continue to be viciously competed by their peers, they will definitely be eliminated by the market and eventually exit the market.