Unlike other metals, the aluminium industry has been equally affected by both market and non-market forces for almost two decades. Currently, the aluminium market is experiencing the substantial influences of poor global economic growth, which is largely affecting the prices of aluminium prices and demand for aluminium from its end-use sectors. The ongoing global economic situation has not set a favourable condition for the aluminium market in the short term. Going forward, as the global economic condition improves; the aluminium market performance will also meliorate. Visiongain anticipates that the value of the global aluminium market in 2012 will reach $112.3 billion.
The surplus production capacity coupled with low demand, high stock volumes and lower interest rates will keep the aluminium prices under pressure during 2012 and likely until first half of 2013. Visiongain anticipates that, in the likely scenario, aluminium prices will stay below $2,400 per tonne in 2012.
Aluminium is one of the most versatile and essential materials for the global economy. The commodity’s extensive properties, including strength, conductivity, recyclability, and lightweight make it the world’s second most used metal after steel. Aluminium is consumed in almost every industry; however, out of all these industries, the construction and automotive industries are the largest consumers, consuming over half of the total aluminium consumption. Visiongain foresees the construction and automotive industry will remain the largest aluminium consuming sectors in the five years. The packaging industry, which was the third largest industry after construction and transport sectors for aluminium consumption in 2011, is expected to display the highest growth rate in the next five years.
China will continue to dominate the global aluminium market by significantly increasing its share of global aluminium consumption over the next five years. The Chinese aluminium Industry will foresee a boom in the residential and infrastructure markets which will drives its aluminium market. However, the country’s aluminium producers will keep suffering from the high cost of production due to high energy costs and the government’s further restrictions on the usage of electricity.
Looking over the supply-side, the market is shifting towards the Middle East due to the availability of cheap energy in the region, while aluminium producers in Western Europe and Northern America are continuously mothballing or permanently removing their production capacities to reduce losses. Moreover, the rising aluminium production capacity in China is a major concern for aluminium produces around the world.
The report contains 220 tables, charts and graphs that add visual analysis in order to explain developing trends within the aluminium market. Visiongain provides forecasts for the period 2012-2017 in terms of value (US$) and tonnages for the global aluminium market, as well as for seven end-use sectors (transport, construction, packaging, engineering, electrical, appliances, others) of the aluminium market. In addition, nine regional and 12 national markets are forecast and analysed by Visiongain over the period 2012-2017. The report also provides profiles of 21 leading companies operating within the aluminium, market, and includes four exclusive interviews with principal aluminium companies, providing expert insight alongside Visiongain analysis.