The aluminum market analysis shows that the major cost components are Raw Materials: 55–60 percent and Electricity: 24–26 percent
Global Market Overview - Production & Consumption
China produces almost more than half of the world's total production, it currently holds 54.4 percent share in total production. China planned cutbacks on its aluminum and alumina production from the second half of 2017
With the current supply fall, aluminum will end 2017 in deficit of 99,626 MT and will remain in continuous deficit from next one to two years with the expected overall supply loss
The various procurement practices in case of aluminum metal are spot purchase, purchase through bids, long term contracts and short-term contracts.
The 10 leading aluminum producers globally constitute to 53 percent of the global market share, making the market moderately consolidated
Major players Rusal, Chalco, Rio Tinto, and Alcoa, have been engaging in vertical integration to ensure the continuous supply of raw materials and to meet the future demand for Aluminum products.
Global Market Overview - Regional Breakup
Global aluminum capacity is set to decline, and China gears up for the new air pollution prevention and control action plan
The global demand for aluminum in 2018 is expected to increase in proportion to the growth in global gross domestic product
Aluminum consumption by the domestic automobile industry is expected to increase, as automobile manufacturers increase the per vehicle aluminum content, including the substitution of aluminum sheet for steel in certain truck models, in response to increasing fuel efficiency standards
Aluminum consumption by the US and European aircraft manufacturers is expected to increase, as airlines continue to replace older aircraft with newer, more fuel efficient models
Global Market Overview - End-use
The rapidly growing transport industry has the maximum demand for aluminum in developed countries, driven by expansion in the auto market
Developed countries, such as the US, Japan, and the EU member countries, use more aluminum in light vehicle production, which makes cars more energy efficient, in line with the environmental targets
Developing countries, such as China, India, etc., are expanding their infrastructure to satisfy the needs of a growing population, migrating to large cities. Therefore, the construction sector has emerged as the biggest consumer of aluminum across the developing economies
Price Trend and Forecast
Aluminum prices trading at LME have remained under selling pressure and fell by 6.3 percent in July 2018 and averaged to settle at $2099/MT.
Aluminum prices continue to remain under selling pressure following escalating trade tensions between the United States and China as US President Donald Trump's administration pledged to raise the proposed tariffs on $200 billion worth of Chinese goods to 25 percent from an initial 10 percent has reignited fears of an escalating trade war between the world's two largest economies
Moreover China reported a strong rate of production in the first five months of 2018 as total Aluminum production rose 13.6 million tonnes, up 1.4 percent from year ago levels, National Bureau of Statistics (NBS) data showed. Data from the International Aluminium Institute (IAI) reported that, global output, excluding China averaged 75,800 tonnes in May, which is still higher than the 74,100-tonne average last year
The Aluminum industry outlook shows that the major price drivers are Fluctuation, LME Aluminum Stock, Global Supply & Demand, Global Economy, Chinese Supply & Demand and Energy Prices.
Aluminum price trading at LME have consolidated sideways and stood almost unchanged at $1849/MT in April 2019 •Aluminum prices were affected by the sentiments in the global equity markets
Why You Should Buy This Report
The aluminum market analysis report highlights the regional market outlook for Americas, Europe, Australia and APAC region.
Overview of the global Aluminum market, major cost components involved in Aluminum production, ket mergers and acquisitions and procurement strategies.
It lists out the factors affecting the Aluminum Industry and Key Drivers and Constraints such as end-user demand, environmental concerns, dollar exchange rate, etc.
Porter’s five force analysis of the global Aluminum industry
Key supplier profiles and SWOT analysis of players like UC Rusal, Chalco, Alcoa, etc.