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Aluminum
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Intelligence covers market and price outlook, SWOT analysis, demand & supply drivers, engagement models and Procurement best practices

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Intelligence on category covers the following aspects market outlook, supply market, SWOT analysis, Cost components & Price outlook, Demand and supply drivers, Engagement Models and Procurement Best Practices

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Supplier assessment covers the following parameters Financial Risk, Ethical, Labor, Environmental Compliance, IT Security.

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Measure category performance on 15 key parameters across cost, risk and strategy KPIs

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Source Macro Data and Market Indices information from leading data sources across these key areas - Labor Rates, Currency, Energy, Country Risk, Trade Flow/Transportation, Port Data, Tariff, Weather and Epidemics

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Abi will answer all Aluminum related
procurement queries with relevant data points

Abi - AI powered digital procurement assistant

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Get up-to-date market and supplier info on Aluminum to help you build

Intelligence covers market and price outlook, SWOT analysis, demand & supply drivers, engagement models and Procurement best practices

1

Intelligence on category covers the following aspects market outlook, supply market, SWOT analysis, Cost components & Price outlook, Demand and supply drivers, Engagement Models and Procurement Best Practices

manage-risk

Assess Supplier Risk based on key risk and compliance parameters

1

Supplier assessment covers the following parameters Financial Risk, Ethical, Labor, Environmental Compliance, IT Security.

2

Supplier assessment is powered by world’s leading data partners including D&B, CreditSafe, Dow Jones, Refinitiv, Orpheus

discover-supplier

Identify right fit suppliers based on your selection criteria including revenue, capabilities, certification, geography

1

Select suppliers based on industry, country, classification from a database of 4.2 mn suppliers. Get detailed supplier profiles with supplier capabilities, revenue, certifications, risk ratings

assess-category-perforamnce

Benchmark your category performance against peers and the market

1

Measure category performance on 15 key parameters across cost, risk and strategy KPIs

source-market-indices

Get information on key factors affecting your supply

1

Source Macro Data and Market Indices information from leading data sources across these key areas - Labor Rates, Currency, Energy, Country Risk, Trade Flow/Transportation, Port Data, Tariff, Weather and Epidemics

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COVID 19 impact on Aluminum market

  • Base metal prices are expected to continue to drop in Q’2 2020 as markets are affected due to Coronavirus outbreak and associated measures.
  • The prices had maintained an upward momentum in 2019, but failed to sustain at higher levels, amid mounting fears over the economic impact and slowing demand, due to the Coronavirus outbreak in China. The potential effect of Chinese restriction on its services and manufacturing sectors, is weighing on overall metals market sentiment

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Report Coverage

  • Global Market Overview: Production and Consumption
  • Regional Market Outlook-Americas, Europe, APAC
  • Key Global Supplier Profiles
  • Price Trend and Forecast
  • Mergers And Acqusition

Global Market Size

North America Market Size

6.94 MMT

Europe Market Size

11.36 MMT

APAC Market Size

41.65 MMT

Table of contents

  1. Executive Summary
  2. Category Landscape
  3. Regional Market Outlook
  4. Supply Market Outlook
  5. Demand Market Outlook
  6. Beroe’s Recommendations for an ideal Category Strategy
  7. Category Opportunities & Risks
  8. Impact of COVID-19 on Aluminum
  1. COVID-19 Impact Assesment
  2. Sourcing Location Watch
  3. Supplier Watch
  4. Industry Watch
  5. Covid-19 Impact

 

  1. Market Analysis
  2. Global Market Overview: Production and Consumption
  3. End-uses
  4. Regional Break-up
  5. Regional Market Outlook
  6. Porter’s Five Forces Analysis

 

  1. Procurement Best Practices
  2. Procurement Strategies
  3. Procurement Practices
  4. Sourcing Contracts
  5. Contract and Payment Terms

 

  1. Market Monitoring Insights
  2. Aluminum Price Trend and Forecast
  3. Aluminum: Global (LME) Price Outlook
  4. Aluminum Price Drivers
  5. Value Chain -Aluminum Production
  6. Raw Material Price Forecast
  7. Cost Analysis and Expected Savings

 

  1. Sustainability Initiatives
  2. Sustainability Initiatives

 

  1. Tariffs & Trade Analysis
  2. US Tariffs –Trade Analysis
  3. Tariffs and Scrap Quotas

 

  1. Supplier Analysis
  2. Global Supplier List and Capabilities
  3. Regional Supplier List and Capabilities
  4. Key Global Supplier Profiles

 

  1. Appendix
  2. Price Indices: Regional Comparison

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Aluminum Market Forecast and Global Outlook

  • Asia will continue to lead the global aluminum industry, in terms of growth prospects until 2021. 
  • Curtailment measures by suppliers and lower demand from the automotive sector will negatively impact the market; however, demand is expected to be driven by construction and electrical engineering sectors.
  • Key driving forces of the aluminium market include downstream demand, rising construction projects, and demand for lightweight and energy-efficient materials in various end-use sectors
  • Highest production regions: China, Russia, Canada, India, and the UAE. 
  • Highest consumption regions: China, the US, Germany, Japan, and the UAE
  • Highest aluminium market maturity regions: Asia Pacific (APAC), and the Americas.
  • Even though aluminum has been commonplace in the automobile industry over the past several years, the metal is finding immense use in the manufacturing of electric vehicles (EV), given its lightweight and high-tensile strength attributes. 
  • Considering the rising carbon footprint, governments across continents are imposing strict norms to promote energy efficiency in automobiles.
  • Automotive heavyweights such as Mercedes and BMW are increasingly replacing stainless with aluminum as it accents similar features.

Global Aluminium Market Overview - Production & Consumption

  • The aluminum market is expected to see a supply surplus scenario from 2020, on the account of a fall in demand from the downstream sectors. 

  • The global production of primary aluminum was expected to hit 10-11% in 2020. China, the largest producer of aluminum, is likely to witness a downtrend in production due to the closure of plants by established players such as Xinfa group and Hongqiao Group. 

  • The production is expected to grow at a CAGR of 2–3% over the forecast period, aided by increased production in China, Iran, and Indonesia. In China, companies including East Hope, Hangzhou Jinjiang Group, Baoshan Iron and Steel, Inner Mongolia Mengtai Group, are planning to increase production capacity. SALCO aluminum smelter in Iran was expected to start by 2020. Moreover, Indonesia’s Asahan Aluminium (Inalum) plans to ramp up its production.

Global Aluminum Market - Drivers and Restraints

Drivers 

Rising Usage in Pharmaceutical Industry

Aluminum blister foils are broadly used in pharma packaging for packing tablets and capsules. This blister packaging contains a molded plastic with cavities for each tablet or capsule, a push-through blister, and a push-through closure made from aluminum foils, which is called lidding foil or blister film.

The strip pack is developed by placing the tablet or capsule in a blister or blister of a plastic-molded sheet, and then thermally welding the plastic film to the aluminum foil which is printed and layered with a binder and a protective agent. As such, aluminum foil for blister packaging is also the key aluminium foil in pharma packaging.

Flexible Packaging 

  • Aluminum foil packaging usually comes in the form of pouches, containers, foil wraps, and blisters. Among these, the demand for containers is high in the marketplace as it suits the flexible packaging criteria. 
  • In Saudi Arabia or the UAE, the demand for aluminium foils is more in the packaging of food & beverage products. As such, the private stakeholders are investing in these regions in the flexible packaging format, according to the aluminum industry outlook 2020 and 2021.

Restraints

Stringent Environmental Norms

  • The implementation of strict environmental policies is negatively impacting the aluminum price forecast.
  • Market players in the global aluminum market are tied up in bureaucratic knots to rethink and develop smelting facilities as per the new emission standards, thus adding to the operational costs.
  • Moreover, consumers are increasingly toward products that have been packaged with eco-friendly layering.

Global Market Overview - Regional Breakup

  • Following regions witnessed a downtrend in production Y-o-Y: China (1.9%), Latin America (7.3%), Europe (2.2%), whereas North America witnessed a slight production increase by 1% and production in Asia (excl. China) witnessed a production increase, owing to increasing supply from the Middle East economies.
  • The global aluminum installed capacity has declined, as China geared up for the new air pollution prevention and control action plan. The production in Latin America decreased, mainly on the account of production curtailment by Albras Alumínio Brasileiro. 
  • Production of aluminum foils and films in North America has risen, primarily driven by the production rebound of prominent US companies including Century Aluminum, Magnitude 7 Metals & Alcoa (Warrick smelter). 
  • Primary aluminum consumption in China decreased by 1.53%, amounting to 36.07 MMT due to reduced demand from the automotive sector as the government ended subsidies for cheap and low-quality hybrids and electric cars. Countries such as Japan, Korea, and India followed the same trend.
  • While import tariff by the European Union (EU) on unwrought aluminum has minimum to no effect on demand, it has led to the rise in imports. Currently, imports account for around 74% of primary aluminum demand. Demand in North America witnessed a slight increase of 1% in H1 2019, majorly driven by the automotive industry. However, reports reveal that demand is anticipated to drop on a yearly basis with respect to 2018.
  • The booming construction sector in Asia Pacific (APAC) is projected to drive the aluminium market in the region. Large-scale aluminum production capacities have triggered product availability at lower costs. Moreover, rising recycling rates are likely to create worthwhile opportunities for market players and offer a boost to aluminum sales.

Global Market Overview - End-use

  • The construction sector will remain the major driver of the upward aluminum market trends owing to surging expenditure on infrastructure and residential development projects in emerging economies as well as increasing shift towards green construction technology, where aluminum fabrications, aluminum castings, aluminum extrusions, and aluminum profiles are key components of construction materials.
  • The transport industry, a key consumer of diecast aluminum, aluminum forgings and aluminum flat-rolled products, witnessed a slowdown in the initial phase of 2020 due to COVID-19 restrictions. Consequently, global production of automobiles fell by approximately 3-5%.
  • Aluminum is finding immense use in electronic products such as laptops, smartphones, and tablets given its lightweight and high-strength attributes.  
  • Demand from the packaging industry is also expected to increase as industries look for alternatives for plastic packaging.

Price Trend and Forecast

  • Aluminum price trading at London Metal Exchange (LME) has remained under selling pressure and dropped by 6.3% in July 2018 and averaged to settle at $2099/MT.
  • Moreover, escalating trade tensions between the US and China as the former’s administration pledged to raise the proposed tariffs on $200 billion worth of Chinese goods to 25% from an initial 10%, have further put pressure on aluminum price trading
  • China reported a strong rate of production in the first half of 2018 as total aluminum production rose 13.6 million tonnes, up 1.4% from previous year levels, according to the National Bureau of Statistics (NBS). Moreover, International Aluminium Institute (IAI) reported that global output, excluding China, averaged 75,800 tonnes in May 2020, which is still higher compared to the 74,100-tonne average last year
  • Major price drivers include fluctuation, LME aluminum stock, global supply & demand, global economy, Chinese supply & demand, and energy prices.
  • Aluminum price trading at LME has consolidated sideways and stood almost unchanged at $1849/MT in April 2019.
  • Aluminum prices were affected by sentiments in global equity markets.

Why You Should Buy This Aluminum Market Report

  • The aluminum market analysis report highlights the regional aluminum industry outlook 2021,  aluminium market size, aluminum market share, aluminum market forecast, aluminium price forecast 2021, and aluminum market trends for the Americas, Europe, Australia, and APAC. 
  • Overview of the global non-ferrous metals, minerals and mining aluminum market, major cost components involved in aluminum production, key mergers and acquisitions (M&A) strategies.
  • It lists out the factors affecting the aluminium industry and key drivers and constraints such as end-user demand, environmental concerns, and dollar exchange rate.
  • Porter’s five forces analysis of the global aluminum industry.
  • Key supplier profiles and SWOT analysis of players such as UC Rusal, Chalco, and Alcoa.

Aluminium Market Frequently Asked Questions

  1. What is the aluminium market size in the major market regions across the globe?
  2. According to the global aluminium market analysis reports by Beroe, the APAC market leads the market with a total size of 41.65 MMT. In Europe, the aluminium market size is 11.36 MMT, and in North America, it is 6.94 MMT.
  1. At what CAGR was the global aluminium production expected to grow during the 2020 forecast period?
  2. Due to the coronavirus outbreak and associated measures, it is expected that base metal will witness a drop in their prices in Q’2 2020. Earlier in 2019, the prices had maintained an upward momentum but didn’t do well at higher levels due to the slowing demand and economy. Besides, the impact of Chinese restriction on its services and manufacturing sectors is weighing on the overall metals market.
  1. What are the latest trends in the aluminium market?
  2. Due to the coronavirus outbreak and associated measures, it is expected that base metal will witness a drop in their prices in Q’2 2020. Earlier in 2019, the prices had maintained an upward momentum but didn’t do well at higher levels due to the slowing demand and economy. Besides, the impact of Chinese restriction on its services and manufacturing sectors is weighing on the overall metals market. 
  1. What are the key drivers of the aluminium market?
  2. Looking at the aluminium market analysis, the key market drivers include downstream demand, technological advancements and demand for lightweight and energy-efficient materials.  
  1. How is the global market outlook for the aluminium industry?  
  2. The highest production regions of the metal include China, Russia, Canada, India and UAE. A significant part of the market demand is consumed by China, the US, Germany, Japan and UAE. The major end-users of aluminium are the transport sector (27%), construction (25%), packaging (15%), electrical (13%) and others (20%). APAC and America constitute the highest market maturity regions
  1. Who are the major players in the aluminum industry?
  2. The ten leading aluminium producers across the globe constitute about 53 percent of the global aluminium market share. China alone holds 54.4 percent of the total production share, which is more than half of the world’s total production. Rusal, Chalco, Rio Tinto and Alcoa are some of the major players who have been engaging in vertical integration to make sure there is a continuous supply of raw materials to meet the future demand for Aluminium products.  
  1. What are the important takeaways from Beroe’s aluminium price forecast 2021 report?  
  2. From Beroe’s industry analysis and research, the aluminium prices trading at LME remained under selling pressure. The prices fell by 6.3 percent in July 2018 while settling at an average of $2099 per MT. The prices continue to remain under selling pressure following the escalating trade tensions between the United States and China. President Donald Trump’s administration pledged to raise the proposed tariffs on $200 billion worth of Chinese goods from an initial 10 percent to 25 percent. This reignited the fear of an escalating trade war between the two largest economies of the world.
  1. How do the global aluminium market trends affect the end-use industries?
  2. The transport industry is a major driver for diecast aluminium, aluminium forgings, and aluminium flat-rolled products. As their demand experienced a slowdown at the beginning of 2020, the global production of motor vehicles fell by 3-5 percent approximately. Another industry that is a major demand driver for the global aluminium market is the construction sector that uses aluminium fabrications, aluminium castings, aluminium extrusions, and aluminium profiles. The demand will increase due to the increasing shift to green construction technology in building infrastructure in emerging economies. Industries are looking for alternatives to plastic packaging, so the demand from the packaging industry is also expected to increase.   

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