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  • Why is the drying step required in the production process of easy open lids?
    Why is the drying step required in the production process of easy open lids? Oct 12, 2024
    The drying step is an essential part of the production process for easy open lids, and it plays a critical role in ensuring the quality and functionality of the final product. In this blog post, we will explore the reasons why the drying step is necessary in the production of easy open lids.   Moisture Removal: The drying step helps to remove any moisture present in the lid materials. Moisture can negatively impact the quality of the lids and lead to issues such as corrosion or poor adhesion of the opening mechanism. By drying the lids, we ensure that they are free from moisture before further processing.   Adhesive Application: Easy open lids typically require the application of adhesive to secure the pull tab or ring. To ensure proper adhesion, the lids need to be completely dry. Moisture on the lid surface can interfere with the adhesive's ability to bond to the lid, compromising the functionality of the easy open feature. Drying the lids ensures a clean and dry surface for the adhesive application.   Preventing Contamination: Moisture in the production environment can introduce contaminants onto the surface of the lids. Contaminants such as dirt, dust, or particles can adversely affect the lid's appearance and performance. Drying the lids helps to eliminate moisture and minimize the risk of contaminants adhering to the lid surface during subsequent production steps.   Enhancing Coating Quality: Easy open lids often undergo additional coating processes to improve their appearance, durability, or barrier properties. Drying the lids before coating allows for better adhesion and uniformity of the coating material. Moisture on the lids can interfere with the coating process, leading to uneven coverage or coating defects.   In summary, the drying step in the production process of easy open lids is necessary to remove moisture, ensure proper adhesion of the opening mechanism, prevent contamination, and enhance the quality of subsequent coating processes. By including this step in the production workflow, manufacturers can produce high-quality easy open lids that meet the functional and aesthetic requirements of customers.
  • Understanding the Difference between ETP and TFS in Tinplate Lids
    Understanding the Difference between ETP and TFS in Tinplate Lids Sep 28, 2024
    Tinplate lids, commonly used in the packaging industry, play a crucial role in preserving the freshness and quality of various products. Among the different materials used for tinplate lids, ETP (Electrolytic Tinplate) and TFS (Tin-Free Steel) are widely used and offer distinct properties. In this blog post, we will explore the differences between ETP and TFS in tinplate lids, helping you understand their unique characteristics and applications.   Overview of ETP: ETP, or Electrolytic Tinplate, is a thin steel sheet coated with a layer of tin through an electrolytic process. The tin coating provides several advantages, including excellent corrosion resistance, high solderability, and good formability. ETP's smooth and shiny surface enhances the visual appeal of the tinplate lids and offers a protective barrier against moisture and other environmental factors. It is commonly used in food and beverage packaging, where the tin coating acts as a reliable barrier to prevent interactions between the contents and the metal.   Distinct Features of TFS: TFS, or Tin-Free Steel, is a steel sheet with a metallic coating, typically made of chromium or chromium oxide, instead of tin. Unlike ETP, TFS does not have a tin layer and offers unique properties that make it suitable for specific applications. TFS provides excellent strength, making it more resistant to scratches and abrasions compared to ETP. It is commonly used in the production of easy-open lids, which require durability and resistance to external impacts. TFS lids are widely employed in the packaging of non-food items such as aerosol cans, paint cans, and metal containers that require robust protection.   Comparison between ETP and TFS:   Coating: ETP is coated with a layer of tin, while TFS utilizes a metallic coating, such as chromium or chromium oxide. Corrosion Resistance: ETP's tin coating provides superior corrosion resistance, making it ideal for food and beverage packaging. TFS, on the other hand, relies on its metallic coating to offer protection against corrosion. Surface Appearance: ETP offers a shiny and reflective surface due to its tin coating, contributing to an attractive visual appearance. TFS, without a tin layer, usually has a matte or metallic finish. Applications: ETP is commonly used in the production of tinplate lids for food and beverage packaging, where the interaction between the contents and the metal must be minimized. TFS finds applications in non-food packaging that requires strength, such as aerosol cans and paint cans. In conclusion, ETP and TFS are two distinct materials used in the manufacturing of tinplate lids. ETP offers excellent corrosion resistance, high solderability, and an attractive surface finish, making it suitable for food and beverage packaging. On the other hand, TFS provides exceptional strength and durability, making it ideal for non-food packaging applications. Understanding the differences between ETP and TFS enables manufacturers to choose the appropriate material for their specific packaging requirements. When it comes to tinplate lids, selecting the right material ensures optimal performance, visual appeal, and functionality.
  • Are Aluminum Cans Safe? Debunking the Myths and Understanding the Facts
    Are Aluminum Cans Safe? Debunking the Myths and Understanding the Facts Sep 28, 2024
    Aluminum cans have become a popular choice for packaging beverages and food products due to their convenience, lightweight nature, and recyclability. However, there have been concerns and misconceptions regarding the safety of aluminum cans. In this blog post, we will address these concerns by exploring the facts and discussing the safety aspects of aluminum cans. The Myth of Aluminum Leaching: One common myth surrounding aluminum cans is the belief that aluminum leaches into the contents of the can, posing health risks. However, extensive research and studies have shown that the inner surface of aluminum cans is coated with a protective layer to prevent direct contact between the food or beverage and the aluminum. This protective coating acts as a barrier, ensuring the safety of the packaged product. Regulatory Standards and Testing: Aluminum cans are subject to rigorous quality control measures and industry standards. Regulatory authorities, such as the U.S. Food and Drug Administration (FDA) and the European Food Safety Authority (EFSA), have set specific limits and guidelines for the use of aluminum food and beverage packaging. These limits ensure that any potential migration of aluminum into the contents remains well below the established safety thresholds. Health and Safety Considerations: The small amount of aluminum that may migrate from cans into food or beverages is generally considered safe for consumption. In fact, aluminum is one of the most abundant elements in the Earth's crust, and our bodies naturally ingest trace amounts of aluminum from various sources, including food, water, and air. The human body has efficient regulatory mechanisms to handle and eliminate the small quantities of aluminum that we encounter in daily life. Recyclability and Environmental Impact: One of the significant advantages of aluminum cans is their recyclability. Aluminum is a highly sustainable material, as it can be endlessly recycled without losing its quality or performance. This reduces the environmental footprint associated with packaging waste and promotes a circular economy. Conclusion: Contrary to popular misconceptions, aluminum cans are safe for packaging food and beverages. The protective coating on the inner surface of the cans prevents direct contact between the contents and the aluminum, ensuring consumer safety. Regulatory standards and testing further reinforce the safety of aluminum cans, with limits set for any potential migration of aluminum into the packaged products. Moreover, aluminum cans are environmentally friendly, thanks to their high recyclability. So, next time you enjoy a refreshing beverage from an aluminum can, you can do so with confidence, knowing that it is a safe and sustainable packaging option.
  • How To Find The Best Beer End For Your Business
    How To Find The Best Beer End For Your Business Sep 20, 2024
    Craft beer has become a popular trend in recent years, and with that trend, the demand for beer ends has increased. The beer end is the aluminum cap that seals the bottle or can, and it must be durable, effective, and visually appealing to attract consumers. In this article, we will discuss how to find the best beer end for your business.   1. Consider durability It is important to choose a beer end that is durable to ensure that the beer remains safely sealed. The end should have a high level of corrosion resistance and should withstand the pressure of the carbonation in the beer. You should choose a supplier with a reputation for producing high-quality and durable beer ends.   2. Think about compatibility Compatibility is another crucial factor to consider when it comes to beer ends. Ensure that the supplier's beer ends are compatible with your bottling line. If you fail to select compatible beer ends, it will lead to production errors that can be time-consuming and costly.   3. Focus on branding and aesthetics Beer ends can be a great way to enhance your branding and aesthetic appeal. Choose a supplier that offers a variety of options for customization, such as different shapes, colors, and finishes. Personalizing your beer ends can help to create a unique look and feel for your brand, which attracts consumers.   4. Look for exceptional customer service When selecting a supplier for beer ends, it is crucial to look for one that provides exceptional customer service. Choose a supplier that offers fast and efficient delivery of beer ends and has an efficient communication channel that helps to resolve any issues that you may encounter quickly.   In conclusion, finding the best beer ends for your business is essential to ensure that your beer is well-protected, visually appealing and reflects your brand. Carefully consider factors such as durability, compatibility, branding, and customer service when selecting a beer end supplier. With these factors in mind, you can confidently select a beer end that meets all your requirements and enhances your brand's identity.
  • The Science Behind Aluminum Beverage Easy Open End
    The Science Behind Aluminum Beverage Easy Open End Sep 20, 2024
    The sealing principle of aluminum beverage easy open end lids is crucial to maintaining the freshness and safety of the contents within the bottle. It is based on the concept of elastic deformation that involves the aluminum cap being twisted around the bottleneck of the bottle to form an airtight seal.   When the user wants to open the bottle, the aluminum beverage cap is lifted upward, which releases the pressure on the rim of the bottle's opening. Then the elastic energy stored within the aluminum cap is released, which results in the aluminum cap reverting to its original shape: the cap pops off due to the elastic deformation energy.   Through the use of the inherent plasticity of the aluminum cap, the seal helps to keep the contents fresh and prevent contamination or spoilage. This sealing principle is so effective that it not only preserves the contents of the bottle but also increases the shelf life of the beverage.   In conclusion, aluminum beverage caps are an essential part of our daily lives, and their sealing principle is one of the core reasons why beverages can be transported and stored in a safe and healthy manner. As this technology develops and improves, we can expect the caps to become even more reliable in the future.
  • The Printing Process of Aluminum Beverage Cans
    The Printing Process of Aluminum Beverage Cans Sep 14, 2024
    Aluminum beverage cans are not only functional but also serve as a canvas for creative branding and marketing. The printing process used for these cans is a critical step that ensures the visual appeal and effectiveness of the product. In this blog, we’ll explore the various stages of the printing process for aluminum beverage cans.   1. Surface Preparation Before printing can begin, the aluminum can surface must be properly prepared. This involves cleaning and treating the surface to ensure that the ink adheres effectively. The surface is typically washed with a chemical solution to remove any grease, dust, or contaminants. After cleaning, a primer may be applied to enhance adhesion and provide a smooth base for printing.   2. Printing Methods There are several printing methods used for aluminum cans, each with its advantages:   a. Flexographic Printing Flexographic printing is one of the most commonly used methods for aluminum cans. This technique uses flexible relief plates to transfer ink onto the can's surface. It is ideal for high-volume production and allows for vibrant colors and detailed graphics. Flexo printing is particularly advantageous for large runs due to its speed and efficiency.   b. Offset Printing Offset printing is another method that can be used for aluminum cans, especially for smaller runs or more intricate designs. In this process, the image is transferred from a plate to a rubber blanket and then onto the can. Offset printing offers high-quality images and is effective for detailed designs, but it is generally slower than flexographic printing.   c. Digital Printing Digital printing is gaining traction in the beverage can industry, especially for short runs and customized designs. This method eliminates the need for plates, allowing for rapid printing and greater flexibility in design changes. Digital printing is ideal for promotional campaigns or limited-edition cans, as it allows brands to quickly respond to market trends.   3. Ink Types The choice of ink is crucial in the printing process. Water-based inks are commonly used for their eco-friendliness and safety. These inks dry quickly and provide excellent adhesion to the aluminum surface. UV-curable inks are also popular, as they cure instantly under UV light, offering durability and resistance to scratches and fading.   4. Quality Control Quality control is an essential part of the printing process. After printing, cans undergo rigorous inspection to ensure that the colors are accurate, the designs are correctly aligned, and there are no defects. Any cans that do not meet quality standards are removed from the production line to maintain the integrity of the final product.   5. Final Touches Once the printing is complete and quality assurance checks are done, the cans may receive additional treatments, such as a coating for added protection or a lacquer finish to enhance the appearance. These final touches help ensure that the designs remain vibrant and intact throughout the product's lifecycle.   Conclusion The printing process for aluminum beverage cans is a complex yet fascinating journey that combines technology and creativity. From surface preparation to final quality checks, each step plays a vital role in producing visually appealing and functional products. As brands continue to innovate and seek new ways to capture consumer attention, the printing techniques for aluminum cans will undoubtedly evolve, leading to even more exciting designs in the future.
  • What are the differences between a 330ml standard aluminum can and a 330ml sleek can?
    What are the differences between a 330ml standard aluminum can and a 330ml sleek can? May 30, 2024
    In the world of beverage packaging, 330ml aluminum cans come in two popular options: the standard can and the sleek can. While they both serve the purpose of containing beverages, there are noticeable differences between the two. This aims to explore and compare the features and benefits of 330ml standard aluminum cans and 330ml sleek cans.   1. Design and Appearance: - 330ml Standard Aluminum Can: The standard can is cylindrical in shape with vertical grooves and a wider diameter. It has a traditional and familiar look that is commonly associated with canned beverages. - 330ml Sleek Can: The sleek can, also known as the slim can, features a more elongated and slender design. It has smooth sides and a narrower diameter, giving it a modern and stylish appearance.   2. Portability: - 330ml Standard Aluminum Can: Due to its wider shape, the standard can may be slightly bulkier to carry. However, it offers a sturdy grip and stability. - 330ml Sleek Can: The sleek can's slim and tall structure makes it easier to hold and carry, especially for consumers on the go. It offers a more convenient and portable option.   3. Shelf Space and Storage: - 330ml Standard Aluminum Can: With its wider diameter, the standard can occupies more shelf space. However, it provides greater stability when stacked. - 330ml Sleek Can: The sleek can's narrower diameter allows for efficient use of shelf space. It is often preferred by retailers as it enables them to display more products in the same storage area.   4. Branding Opportunities: - 330ml Standard Aluminum Can: The broader surface area of the standard can provides ample space for branding, product information, and eye-catching designs. - 330ml Sleek Can: Despite having a more slender profile, the sleek can offers a taller canvas for creative and impactful branding, allowing for unique and visually appealing packaging.   5. Consumer Preference: - 330ml Standard Aluminum Can: The standard can is a recognizable and established choice for many consumers due to its traditional design and wide availability. 330ml Sleek Can: The sleek can appeals to consumers seeking a modern and upscale image. Its sleekness and sleek shape add to a premium drinking experience.   Both the 330ml standard aluminum can and the 330ml sleek can serve as popular options for beverage packaging. The choice between them depends on factors such as branding objectives, consumer preference, and portability requirements. Ultimately, brands can select the can style that best aligns with their product positioning, target market, and overall packaging strategy.    
  • The United States has announced a significant increase in tariffs! The aluminum tariff has been raised to 25%, which may exacerbate the external strength and internal weakness of aluminum prices.
    The United States has announced a significant increase in tariffs! The aluminum tariff has been raised to 25%, which may exacerbate the external strength and internal weakness of aluminum prices. May 15, 2024
    On May 14, 2024, the Office of the United States Trade Representative (U) announced the results of the four-year review of the Section 301 tariffs on China. They have decided to further increase the tariffs on electric cars, lithium batteries, photovoltaic cells, critical minerals, semiconductors, as well as steel and aluminum, port cranes, and personal protective equipment (concentrated in seven sectors) imported from China, on top of the existing Section 301 tariffs. Specific, the tariff on Chinese electric cars will be increased from 25% to 100%. The tariff on lithium-ion batteries and their components for electric vehicles will rise from the current 7.5% to 25%. The tariff on solar panels will increase from 25% to 50%, and the tariff on semiconductors will go up from 25% to 50%. The tariffs on certain steel and aluminum products will be raised from 0-7.5% to 25%. Additionally, the tariff on natural graphite, permanent magnets, and certain other critical minerals will be increased from zero to 25%. China firmly opposes and strongly protests against these measures. The White House website released a statement indicating that the Biden administration will maintain the tariff policies implemented by the previous Trump administration and increase tariffs on other goods. The White House claims that the new measures will impact approximately $18 billion worth of imported goods from China, including steel and aluminum, semiconductors, batteries, critical minerals, solar panels, and cranes. Chinese response: Will take resolute measures. The spokesperson of the Ministry of Commerce stated that the US side, driven by domestic political considerations, has abused Section 301 tariff review process and further increased tariffs on certain Chinese products. This moveizes and instrumentalizes trade issues, and represents a typical case of political manipulation. China strongly expresses its dissatisfaction with this. The WTO has already ruled that Section 301 tariffs violate WTO rules. Instead of making corrections, the US side persists in its wrongdoings. The spokesperson of the Ministry of Commerce stated that the U.S. side, for domestic political considerations, has abused the 301 tariff review process and further increased tariffs on certain Chinese products. This politic and instrumentalization of trade issues are typical political manipulations, and China expresses strong dissatisfaction with this. The has already ruled that the 301 tariffs violate WTO rules. Instead of correcting its mistakes, the U.S side persists in its wrong actions. The spokesperson further mentioned that the U.S. increase in the 301 tariffs goes against President Biden's commitment of not seeking to suppress or contain China's development and not seeking to decouple or disengage from China. It also contradicts the spirit of consensus reached between the leaders of the two countries and will severely impact the atmosphere of bilateral cooperation. The U.S. side should immediately correct its wrongdoings and cancel the additional tariffs on China. China will take resolute measures to defend its legitimate rights and interests. Chinese Foreign Ministry spokesperson Wang Wenbin said that China has always opposed unilateral imposition of tariffs that violate WTO rules and will take all necessary measures to safeguard its legitimate rights and interests. An anonymous senior U.S. official stated that some of the tariff increases will take effect at a later time to allow for a transition period for the United States to expand domestic production capacity. According to China Jincai Fortune Futures, the recent increase in tariffs by the United States on certain Chinese steel and aluminum products may have a significant impact on the price of aluminum. This is because China's exports of aluminum and aluminum products to North America accounted for around 20% of the total 2023. If the new tariffs are implemented, it could heavily impact domestic aluminum exports, while the expectation of aluminum shortages overseas may continue to rise. Additionally, with the sanctions on Russian aluminum by the United Kingdom and the United States, followed by the U.S. actions against China, there may be a suppression effect on the market in the short term due to the increase in international prices. However, in the medium term, as Russian aluminum flows into the domestic market and if there is sufficient supply of spot goods, it may exert pressure on the market.
  • What are the advantages of ring pull caps over crown caps?
    What are the advantages of ring pull caps over crown caps? Apr 18, 2024
    Ring pull caps and crown caps are two common sealing methods for beverage cans. Each of them has its own advantages:   1. Ring pull caps:    - Easy opening: Side-pull tabs feature a user-friendly opening design that does not require additional tools or equipment.    - Hygienic safety: Once opened, the Ring pull caps can be completely detached from the can, avoiding cross-contamination with the beverage.    - Versatility: Ring pull caps are suitable for various beverage types and sizes, from small cans to large beer cans.   2. Crown Cap:    - Strong sealing: Crown caps utilize a folded sealing design that effectively prevents liquid leakage and maintains beverage freshness.    - Cost-effective: Crown caps have relatively low production costs, making them suitable for large-scale production and packaging.    - Long history: Crown caps have a long-standing history and wide application in the beverage industry.   In general, Ring pull caps offer convenience and hygiene, catering to consumers looking for easy and quick opening experiences. On the other hand, crown caps provide strong sealing performance and cost-effectiveness, making them suitable for mass production and packaging. The choice between these two types of closures can be based on specific product requirements and market demands.
  • Even after using cans for so many years, you still can't guess what's hidden in that mysterious bulge.
    Even after using cans for so many years, you still can't guess what's hidden in that mysterious bulge. Mar 26, 2024
    You must have had soda before, and you probably used a can as well. But if were to ask you what's inside that raised ring on the edge of the can, you probably wouldn't have a clue. Let's rule out one option first—the ring is not hollow. I bet you can't figure it out no matter how hard you try. In reality, that ring contains liquid. But what kind of liquid is it? Let me explain. The contents of that ring are closely related to the manufacturing process of the can itself. In fact, the can is made of aluminum sheets. These sheets are about 0.3 millimeters thick and are formed by being pressed against a tool called a drawing die. Continuing from there, a cylindrical object (unch) is forcefully from the top down into the aluminum sheet, forming a short cylindrical object resembling an ashtray. This process is called drawing. However, with just one drawing step, the circular disc is still wide and thick, and it has not yet reached the final shape of a beverage can. Therefore, further drawing is required. Each subsequent stamping process thins out the cylinder formed by the aluminum sheet, reducing its radius and increasing its height. After several stamping processes, the initially round sheet takes on the of a beverage can. Now, only two steps remain to complete the manufacturing process of a beverage can. The first step is to create the concave bottom of the can, and the second step is to seal it with a lid. To create the concave bottom, a tool with a rounded dome shape is used. The process is similar to stamping, where the can is pressed onto the semi-spherical tool to form the concave shape. But why does the can a concave bottom.Because the concave bottom, like an arch bridge, can withstand greater pressure. All of these steps together take only about one-seventh of a second. After trimming the top of the can neatly, it can be sprayed with outer packaging. The inside of the aluminum can also needs to be coated, otherwise acidic beverages will react with the aluminum, and you would end up consuming a lot of aluminum, which can lead to neurological disorders. (That's why they say not to eat youtiao made with alum, same principle.) Next, a thinner neck is pulled out for the can to prevent the thin aluminum from wrinkling. Now, it's time for the most crucial part - sealing the beverage can. Firstly, the edge of the neck is folded to form a flange. Then comes the fascinating process of double seaming. Back in 1810, tin cans were invented, and initially, the can lid and bottom were directly welded to the cylindrical can, resulting in food contamination from the welding materials like lead. Nowadays, beverage cans commonly employ double seaming to eliminate such issues. Double seaming is a relatively recent invention. In 1894, Ams machine company started producing double seaming machines for canning. What does double seaming mean? The flange and the lid form a shape resembling a spring roll. Although double seaming may seem ordinary, it requires high precision. A difference of just 1 millimeter can lead to a failed sealing process. However, double seaming alone cannot completely seal the can from the inside and outside. Do you see the gaps within this double seaming layer? These gaps are filled with a liquid sealing compound to prevent gas from escaping through the gaps in the seam and to safeguard the can from external contaminants.
  • An can-container rate of 32.5%—what does it mean for the beer industry?
    An can-container rate of 32.5%—what does it mean for the beer industry? Mar 21, 2024
    "In 2022, the overall canning rate in the beer industry has reached 32.5%. With a beer production volume of approximately 35 million hectoliters in 2022, it translates to 11.5 million hectoliters of beer being packaged using can materials. If we consider the most common packaging format of 330iliters, this to approximately 35 billion cans." During the recent launch event "AB InBev Asia Pacific's Carbon Journey with Aluminum" held by AB InBev Asia Pacific, Ms. Yuan Yue, the Secretary-General of the Beer Branch of China Alcoholic Drinks Association, shared a set of data regarding beer aluminum cans. The increasing canning rate, reaching 32.5% in the beer industry, carries significant implications. Translated into English, it means: Beer is already a packaging-sensitive industry, and with the continuous rise in packaging costs, the increase in the canning rate significantly impacts cost reduction and efficiency enhancement as well as the industry's transition towards premiumization. Moreover, aluminum cans with higher recycling rates contribute to the green and sustainable development of the beer industry, opening up more possibilities. In recent years, major beer giants in China have simultaneously increased their product canning rates. Taking Qingdao Beer as an example, data shows that its beer canning rate reached 27% in 2021, and the proportion of canned products has been steadily increasing. According to calculations by Guoyuan Securities, canned beer products have a profit margin approximately 10% higher than bottled products, and every 10% increase in the canning rate can push the profit margin up by 1-2 percentage points. Whether in production or transportation processes, cans, which are easy to store and have lower costs, offer better cost-effectiveness compared to glass bottles. Beer products primarily use aluminum two-piece cans, which are small in size, lightweight, and have a high recycling rate. They have lower energy consumption during production and are more environmentally friendly compared to glass bottles. They also have excellent compressive and shock resistance properties compared to glass bottles. Furthermore, two-piece cans have lower loss rates and can extend the transportation radius of beer, making them more suitable for large-scale beer production. The packaging of two-piece cans is highly adaptable and can quickly respond to changes in consumer scenarios and brand personalization upgrades. In the context of intense competition in the beer industry, cost reduction and efficiency improvement, as well as premiumization, have become common goals for beer manufacturers. Additionally, with the increasing demand for canned beer in the consumer market, the canning rate in the domestic beer industry continues to rise. According to a research report by Guotai Junan, the average annual increase in the canning rate over the past 10 years is approximately 0.8%. As the main terminal demand market for two-piece cans, the beer industry is estimated to generate an annual demand growth of 1 to 2 billion cans. Despite the significant demand, the current canning rate for beer in China is still relatively low compared to the international market. According to Euromonitor statistics, the canning rate for beer in China, using only two-piece cans, was 26.3% in 2021, while the canning rate in the US beer market is close to 70%, and in the Japanese market, it reaches as high as 90%. Considering the current development trend of the beer market, the canning rate for beer in China is expected to further increase, benefiting the upstream packaging industry. Benefiting Upstream Industries The demand for canned beer in the downstream market accounts for nearly 60%, while tea beverages and other carbonated drinks maintain around 20% each. The increasing canning rate of beer undoubtedly brings new opportunities for the development of the upstream aluminum can packaging industry. Baosteel Packaging has previously stated that with the continuous improvement of the canning rate of beer, it will contribute incremental demand to metal packaging, driving the overall demand for metal packaging products. Leading metal packaging company ORG (including Ball) is a major upstream supplier for companies such as AB InBev Asia Pacific, China Resources Beer, Tsingtao Beer, and Yanjing Beer. By the end of 2021, ORG's canning capacity had reached 13.5 billion cans. According to ORG's semi-annual report, its canning capacity reserve is still increasing. The construction investment of its Jiangmen canning factory project and Zaozhuang canning project is still increasing, with the Jiangmen canning factory project already reaching 99% completion. COFCO Packaging's revenue from aluminum packaging business (including canning and single-sheet cans) increased by 5.2% in the first half of this year. Despite the promising prospects, the aluminum metal packaging industry has a long supply chain and is susceptible to aluminum price fluctuations. Moreover, the aluminum industry is a high-pollution and high-energy-consuming industry, and under domestic environmental policies, production capacity is strictly limited. Meanwhile, downstream industries such as construction, automotive, energy, and food are gradually increasing their demand for aluminum. Combined with reduced production by foreign aluminum companies, the continuous rise in aluminum prices in recent years has directly led to price increases in downstream beer products. A thematic report from Citic Securities shows that foreign electrolytic aluminum production capacity may still be affected by the European energy crisis or expectations of production cuts. Domestic electrolytic aluminum inventory is at a low level, making it difficult to bridge the gap in overseas demand for electrolytic aluminum. It is expected that the decline in aluminum prices in 2023 will be limited, and prices are likely to remain at a high level. The growth rate of can prices is expected to be controlled within high single digits, providing less pressure for the beer industry compared to the overall level in 2022. Amidst the high fluctuation of aluminum prices and the rising trend of energy conservation and emission reduction, recycled aluminum is entering the field of vision of beer companies as a strategic layout for upstream metal packaging enterprises. Currently, beer giants such as China Resources Beer and AB InBev Asia Pacific have started collaborating with upstream suppliers to launch recycled aluminum projects and deepen the development of a green industrial chain. The actions of industry leaders provide insight into the long-term commitment of beer companies to green and sustainable development. According to data, the demand for two-piece cans in China's market exceeded 55 billion cans in 2022. Calculated based on a 60% market share for the beer industry, beer cans accounted for over 33 billion units. Furthermore, according to the International Aluminum Institute, China currently has a recycling rate of over 98% for used beverage cans, making it the largest aluminum can recycling country in the world. Beer, which dominates the aluminum can market, shows enthusiasm for the aluminum industry not only because of cost control considerations but also due to the development of a green industry chain. It is reported that AB InBev Asia Pacific has achieved the equivalent utilization of approximately 6,000 tons of recycled aluminum cans. In addition, they have introduced more low-carbon "lightweight cans," reducing the use of approximately 2,700 tons of aluminum. The aluminum packaging has achieved a carbon emission reduction of over 40,000 tons, with a reduction of over 30% in carbon emissions per can. From the emphasis placed by beer giants on the upstream packaging industry, it is evident that the demand for green development in the beer industry has already spread throughout the entire supply chain. Within this context, apart from creating a healthier industrial value chain, it is important to recognize the intensifying competition in the current beer market. Embracing green and low-carbon practices in the current discourse of high-quality sustainable development often signifies embracing value and the future. The choices made by beer giants regarding green development will become one of the key influencing factors in the ongoing upscale adjustments in the beer industry.
  • Latest Report: Global Aluminum Industry's Greenhouse Gas Emissions Start Declining!
    Latest Report: Global Aluminum Industry's Greenhouse Gas Emissions Start Declining! Mar 07, 2024
    According to the latest data from the International Aluminum Institute (IAI), 2022 marked an important milestone in the aluminum industry's journey towards emission reduction. Despite a global increase in aluminum production, it was the first year that witnessed a decrease in the total greenhouse gas (GHG) emissions from the global aluminum industry, with emissions intensity per unit of primary aluminum decreasing more than the output growth. Miles Prosser, Secretary-General of the International Aluminum Institute, stated, "Our challenge lies in ensuring that we not only increase production but also reduce greenhouse gas emissions. Given the crucial role of aluminum in the overall decarbonization of the economy, global aluminum demand is expected to significantly increase in the coming decades, often resulting in higher emissions. However, the aluminum industry is actively reducing the average carbon intensity of aluminum production per metric ton." The latest data for the year 2022, which has just been compiled, reveals that global aluminum production increased by 3.9%, rising from 104.1 million metric tons to 108.2 million metric tons. However, the overall GHG emissions from the aluminum industry experienced a decrease, dropping from 1.13 billion metric tons of carbon dioxide equivalent to 1.111 billion metric tons of carbon dioxide equivalent. Furthermore, the emissions intensity of primary aluminum production (the average emissions per metric ton of primary aluminum) has consistently declined since 2019. By 2022, the emissions intensity decreased by 4.4%, going from 15.8 metric tons of carbon dioxide equivalent per metric ton of primary aluminum to 15.1 metric tons of carbon dioxide equivalent. Miles Prosser commented, "The data for 2022 demonstrates the progress made by the aluminum industry in reducing production emissions intensity. Although there is still much work to be done, 2022 marks the first year where emission reductions, through reducing emissions intensity, offset the emissions associated with production growth. This is a significant achievement."  
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