Global aluminum market to reach $112.3 billion this year: report
The value of the global aluminum market will reach $112.3 billion this year according to a new study published by Netherlands-based research company ADSReports.
Unlike other metals, says the 248-page document, the aluminum industry has been equally affected by both market and non-market forces for almost two decades. Currently, the sector is experiencing the substantial influences of poor global economic growth, which is largely affecting both the prices and demand for aluminum.
The surplus production capacity coupled with low demand, high stock volumes and lower interest rates will keep the aluminum prices under pressure during 2012 and likely until first half of 2013. This new study anticipates that, in the likely scenario, aluminum prices will stay below $2,400 per tonne in 2012.
Aluminum 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. Aluminum 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 aluminum consumption.
“We foresee the construction and automotive industry will remain the largest aluminum consuming sectors in the five years. The packaging industry, which was the third largest industry after construction and transport sectors for aluminum consumption in 2011, is expected to display the highest growth rate in the next five years,” says ADSReports.
China will continue to dominate the global aluminum market by significantly increasing its share of global aluminum consumption over the next five years. The Chinese aluminum industry will foresee a boom in the residential and infrastructure markets that will drives its aluminum market.
However, the consultants conclude Chinese 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.