The global aluminum market was pegged at 67,744.0 thousand Tons in 2018, according to Global Aluminum Market Report, by Product Type (Extrusions, Rolled, Castings, Wire & Cable and Others), by Application (Automotive & Transportation, Construction, Packaging, Electrical & Electronics, Consumer Durables, Others), and by Region (North America, Latin America, Western Europe, Eastern Europe, APEJ, Japan and Middle east & Africa) published by
Definition of Market/Industry:
Aluminum is the third most abundant chemical element found in the earth's crust and exists in a stable combination with other materials especially oxides and silicates. Aluminum is available in both primary and secondary forms. Primary aluminum is isolated from the ore and refined to be sold whereas secondary type aluminum is re-manufactured from the used scrap and scarp produced during fabrication of the primary Aluminum type. Moreover, aluminum is considered as the most difficult metal that exists on earth for refining because it gets oxidized very easily.
The global aluminum market
is estimated to pegged 72,050.0 Thousand Tons
in terms of volume by the end of 2019
Growing demand for aluminum from the building and construction industry as the material is highly preferred as a green building material is a prime factor propelling the market growth of Aluminum. Rising construction of skyscrapers as Aluminum is widely used in high rise buildings due to its high corrosion and strength that are very important for constructing modern skyscrapers is further projected to boost the market growth. For instance, Yanchep Aluminum Bridge is a 143-meter long and 2.5-meter wide pedestrian bridge in Australia. Also, Sugar City Silos is a 50-meter tall cylindrical building in the Netherlands that is built with Aluminum cladding material. Therefore, the rising demand for Aluminum from the construction and building industry is projected to foster the market growth of Aluminum.
Increasing investment by major players in the automotive and aerospace industry is increasing the demand for high-performance aluminum. Therefore, this is projected to boost the market growth of aluminum. The rising number of mergers and acquisitions is another major factor propelling the market growth of aluminum. For instance, in July 2018, Novelis Inc., the world leader in aluminum rolling and recycling, announced it has signed a definitive agreement to acquire Aleris Corporation, a global supplier of rolled aluminum products, for approximately $2.6 billion including the assumption of debt.
Restriction on the production of aluminum in certain countries is expected to hamper the market growth negatively over the forecast period. Moreover, the ban on pet coke import is also expected to restrict market growth over the forecast period. For instance, in August 2018, The Union Commerce Ministry’s notification prohibiting the import of pet coke which is likely to hit the aluminum and steel manufacturers as major aluminum makers Vedanta, Hindalco, and Nalco import pet coke to make anodes for use in the smelters for the electrolytic process to separate aluminum.
Rolled aluminum product type segment dominated the global aluminum market in 2018, accounting for 32.7% share in terms of volume, followed by Extrusions and Castings, respectively. This is attributed to its increasing demand from food and pharmaceutical industry for packaging purpose.
Construction application segment dominated the global aluminum market in 2018, accounting for 22.9% share in terms of volume, followed by Automotive & Transportation and Packaging, respectively. This is owing to growing application in construction industry such as for manufacturing roofs, façades, venetian blinds and doors.
- Rising concern over the environment is shifting preference of consumers towards green products with lower carbon footprint is projected to offer immense growth to the market of aluminum over the forecast period. Moreover, the growing demand for longer life-span appliances is another major factor that is projected to stimulate market growth over the forecast period.
- Increasing reliance on the import of aluminum in the U.S region is expected to serve as a growth driver to the market of Aluminum. For example, Canada is a leading supplier of Aluminum, accounting for about 65% of crude Aluminum, 21% of semi-manufactures and 54% of total aluminum imports. Increasing production of lightweight automobiles in order to enhance the fuel-efficiency is further expected to propel the market growth of Aluminum over the forecast period. For instance, in July 2015, Audi announced to launch new Audi A4 and A4 Avant with lesser weight from other A4s of nearly 265 pounds current A4s, by using a mix of Aluminum and high-strength steel in the major component.
Few Recent Developments
- Rio Tinto Plc
- Norsk Hydro ASA
- UC RUSAL
- Alcoa Inc.
- China Hongqiao Group Ltd.
- Aluminum Corporation of China Limited
- Emirates Global Aluminum PJSC
- Noranda Aluminum Holding Corporation
- Aditya Birla Management Corporation Pvt. Ltd.
- China Power Investment Corporation
- In April 2015, the company launched a programme to increase alumina production at its Urals Aluminum Smelter from 700 thousand Tons to 900 thousand tons by the end of 2016
- In November 2016, Alcoa Corp., headquartered in New York, says it has completed the separation from its parent company, Alcoa Inc. (now named Arconic Inc.), and has begun operating as an independent, publicly traded company listed on the New York Stock Exchange under the symbol “AA.” They are launching Alcoa Corp. is a world leader in the aluminum industry with distinct competitive advantages across the value chain.
- In September 2015, the company expanded its Tennessee facility in the U.S. for the supply of Aluminum sheet to the automotive industry
By Product Type
- North America
- Latin America
- Western Europe
- Eastern Europe
- Wire & Cable
- Automotive & Transportation
- Electrical & Electronics
- Consumer Durables