Xin Lang Cai Jing·2025-12-15 13:44Core Viewpoint - The ongoing debate over "aluminum replacing copper" in the air conditioning industry has intensified following comments from Gree Electric's chairman, Dong Mingzhu, emphasizing that aluminum has not yet reached the technical standards necessary to replace copper [1][7]. Group 1: Industry Standards and Developments - The China Refrigeration Society released a group standard for aluminum tube fin heat exchangers on December 11, 2023, with major manufacturers like Gree, Midea, Haier, Xiaomi, Hisense, TCL, and Aux participating in the standardization process [1][8]. - A new round of discussions on national standards for heat exchangers is expected to take place in January 2026 [1][8]. Group 2: Industry Disagreements - Several air conditioning companies, including Haier, Midea, and Xiaomi, have joined a self-regulatory agreement to promote aluminum heat exchangers while avoiding false claims and enhancing consumer trust [2][8]. - Gree has not joined this agreement, with Dong Mingzhu stating that the company will consider aluminum only when it can fully replace copper [2][9]. Group 3: Economic Factors - The debate over "aluminum replacing copper" has persisted for over a decade, often reignited by fluctuations in copper prices, which have recently reached historical highs, with LME copper prices exceeding $11,461 per ton [3][9]. - The copper-aluminum price ratio has remained between 2.5 and 4.5 since the supply-side reforms of 2017-2018, with the current ratio at 3.8 as of November 2025 [3][10]. Group 4: Technical Considerations - Concerns regarding aluminum's inferior thermal conductivity, strength, and corrosion resistance compared to copper have been raised, suggesting that using aluminum could negatively impact the lifespan and reliability of air conditioning units [3][6]. - The application of aluminum in refrigerators has progressed more rapidly, with aluminum accounting for nearly 90% of the cooling systems, while air conditioning remains more complex due to varying operational conditions [5][11]. Group 5: Policy Support - The Chinese government has elevated the "aluminum replacing copper" initiative to a policy level, with a plan issued in March 2025 to promote aluminum consumption in various sectors, including home appliances [4][10].