The Next Profit Margin in The Alumina Industry-Red Mud
In the absence of new countries to replace China's declining aluminum demand, the era high profits is expected for the alumina industries.
Only the complete utilization of red mud (also known as "the worldwide problem"), which is expected to bring the next profit, can be attributed to the fact that the alumina manufacturing process has remained unchanged for decades.
The first thing you need to know about red mud
Alumina produces approximately 1.5 tons of red clay, which has a particle size of 0.088 - 0.25 mm, specific gravity of 2.5-2.9, bulk density of 0.8 - 1.0, and melting point of 1250-1250 degC. Below is a table that shows the composition of red clay:
The Bayer method is used to produce the majority of alumina in China. The Bayer Method is characterized with high levels of iron, aluminium and alkali.
Second, the typical alumina case in the utilization of red clay
1. Chinalco Shandong Branch. The data available shows that in 2016, the red mud utilization rate was 25 percent. China's enterprises that produce alumina have a high utilization rate, with accumulated consumption exceeding 12 million reds. Henan Aluminium Industry Transformation and Growth Action Plan (2018-2010) clearly states that the comprehensive usage rate of red clay will reach 10% by 2020. No harm will come if there is no comparison. China's comprehensive utilization rate is too low. Mountain aluminum red clay is used mainly for new coal-burning technology, high grade cement, highway subgrades and brick making.
2. Weiqiao Group, 2018: 20,000 tons of mud red were used to cover the 5.3 km roadbed in the Binzhou section Jiqing Expressway. According to estimates each kilometer of expressway could consume 200,000 tons red mud. Provincial highways can consume up to 60,000 tonnes of red dirt, and municipal road can consume up 20,000 tons. Future market opportunities are wide for countries in China that have a lot of highway mileage.
Third, a typical example of social forces utilizing red mud in a comprehensive manner
Shandong Satellite TV broadcasted a story on December 31st, 2018 about Zibo Tianzhirun Ecological Technology Co. Ltd. using a large quantity of red dirt to produce permeable blocks (consumption 70,000 tons per year). The company's red-mud permeable-brick project, which has a red-mud blend rate of 90% was chosen as one of Shandong Province's top ten innovations for the circular economy in 2018. The company boss invested 30 million. After Zui, only 2 houses had been studded.
This is not merely reminiscent of the fact the enterprises in Inner Mongolia had spent hundreds of billions of dollars trying to crack the production of alumina from fly ash and yet there was no breakthrough.
Fourth, comprehensive red mud usage recommendations
Red mud has been used for a longer time in the production and use of roadbeds. Each has its advantages and disadvantages. There is a nearby plant that produces cement, but the consumption of roadbeds is high. The future demand for permeable blocks is low in economically developed areas. Therefore, it's possible to promote the production of these bricks nationwide. The only disadvantage is the fact that it is more cost-effective to sell bricks within 800 km.
China's red mud alumina is generally used at a very low rate. Our utilization rate may not be as low as that of other countries, but we cannot compare ourselves to foreign countries. China's alumina has entered a new era, one of self-transcendence. We are now able to make full use of red mud. The company's alumina position will be reshaped by the profit margin.
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