At present, judging from the current situation of the aluminum industry, there are still several problems: unappropriate product structure, undeveloped equipement, high manufacturing cost, short of the natural resource, high energy consumption, and heavy pollution, restraining further development of the industry. Moreover, in the aspect of resource alloction, industry condensity, equipment level, product competitiveness and innovation, we are still far behind the western countries. See the specific analysis below:

　　Structural contradictions are prominent

       The problem mainly reflects in the unreasonable, low-level and single product structure, and short product chain; inadequate production of bauxite and rapid expand in electrolysis aluminum; weakness in further fabrication and low added value; sophisticated aluminum products are mainly depend on importation; low condensity and operating rate, inappropriate industry allocation, low risk-resisting ability; low capital liquidity, affecting production factor from optimizing.

　Shortage of raw materials and energ, but heavy contamination

　　Aluminum industry is a resource-based industry, and its development relies on bauxite, energy, electricity and other resources. Compared with the production capacity, the supply of bauxite resources have been in a highly nervous state. The nature of the bauxite resource is poor, and 90% of the bauxite resources are sedimentary bauxite, the ores are diasporas, with high aluminum, high silicon, low iron, and insoluable low-grade, mainly spreading in Shanxi, Henan, Guizhou, and Guangzhou.

　　Because of that, and added the comparatively undeveloped equipments, the energy comsumption is averagely 2-3 times of that of the foreign countries.The red mud, which is produced during processing of alumina, is not thoroughly utilized. The storage of red mud consumes a lot of lands and might contaminate underground water. In the prducing of electrolysis aluminum, lots of CF4 and SiF4 are emmited to the atomosphere, heavily influencing the surroundings, inducing accidents especially in bad weathers. The anodes will produce asphalt smokes that contain carcinogen. The recycling of scrap aluminum is also heavily pollutive, some of the recycling companies are built on the hills and emit wasted water directly into rivers and farmlands. During the decomposition of wasted electrics or motors or calbes, except for some useful substances, about 2%-5% of the waste will be discarded.The recycling companies are small, many, and scattering. There are many family-run companies; the technology is undeveloped and lots of energy and resource are wasted, heavily contaminating the environment; the recycling price and final sales price twist, dramatically different to international price; the complexity of the scrape source, inspection during importation, and pricing, added the processing companies need to pay more taxes because they don't have enough deduction to add value tax, will undermine the upgrade of the industry.

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�/�/nt-family: "Times New Roman";color:#252428;mso-font-kerning:0pt'>Less differentiation and more competition

As the market enters the mature phase, competition will be more intense, and profitability will be lessened. Besides, as the products become more and more diverse, forming a multiple market that mainly consists of, aluminum, plastic, wooden, steel, four materials. And new technology will still bring in more new products in the future, which will lessen the differentiations among products and bring in more competition.

Credit crunch and "Matthew effect" will occur

Under the national marcoeconomic control and the credit crunch, the business environment of the industry deteriorates, and more money is needed for one project. Meanwhile, the government requires the building companies to provide the worker’s salary margin, which occupies another part of money and slow down the turnover speed of capital. Therefore, large companies are more likely to get larger business opportunities than the small ones. 

 Technology and innovations will become the core competitiveness of a company

Product development will be more rational and based comprehensive factors such as local climate and culture characteristics, economic conditions and environmental requirements. At same time, foreign technology and materials will be used to develop new products.

Competitions become scalizational and international

The industry is inclined to form company groups with larger scales and companies of the whole industry chain will get closer to each other, such as, companies that produce raw materials start glass wall producing or assembly business; different companies begin to realized the importance of cooperation which helps to explore the market and make use of one’s limited resource and advantages, becoming strategical alliances.