Global Aluminum Market to Reach 71.2 Million Tons by 2018, According to New Report by Global Industry Analysts, Inc.

GIA announces the release of a comprehensive global report on the Aluminum markets. The global market for Aluminum is forecast to reach 71.2 million tons by the year 2018. Major factors driving growth in the Aluminum market include increasing demand for the metal in developing countries, lower per capita consumption of Aluminum in emerging markets, increasing applications of Aluminum in various sectors, increasing regulations in the automotive sector that are driving use of Aluminum, and recovery in demand from end-use segments post recession.

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Aluminum: A Global Strategic Business Report

San Jose, California (PRWEB) May 14, 2012

Follow us on LinkedIn – Demand for aluminum continues to rise, particularly in the emerging markets, in part due to lower per capita consumption of the metal in these parts of world. Additionally, aluminum use in various end-use sectors is increasing thanks to significant benefits offered by this metal as a replacement to conventional metals. Aluminum use in automotives is enabling manufacturers to reduce weight of the vehicles thereby enabling them to enhance fuel efficiency of their products, contribute to reduce CO2 emissions and conform to increasingly stringent emission standards. Likewise, aluminum represents a versatile metal with significant applications in diverse industries such as packaging, construction and aerospace among others. Emerging markets are witnessing rapid growth given the increasing use of the metal in these countries. However, these markets, excepting countries such as China, are yet to catch up with demand in developed markets.

Barring a few hiccups in between, global production as well as consumption of aluminum grew remarkably worldwide during the decade ending 2010. Beginning 2002, global growth in production and consumption of aluminum moved at a dramatic pace until 2008, before the world entered into the worst global economic recession in decades. However, aluminum production fell in 2009, pushing the industry into a crisis. Recovery, though, was earlier than expected with production as well as consumption levels rising again in 2010. Demand for aluminum worldwide is skewed more towards consumer applications than industrial applications, a characteristic different from markets for other metals such as Zinc and Copper. Consumer end-use markets such as consumer packaging & consumer goods and transportation segments account for a major chunk of aluminum applications worldwide. Other sectors such as Construction & Infrastructure and Machinery/Equipment & Electrical segments account for a relatively lesser share in the aluminum market, as compared to the market for Zinc and Copper. Aluminum in the transportation industry is primarily used in light truck and automotive applications. The metal is a preferred choice for manufacturers in their drive to reduce vehicle weight and in turn achieve better fuel efficiency, performance and minimize emissions.

Regionally, China, Europe and the US remained the production hubs for aluminum. As of 2011, there were around 120 smelters operating worldwide, excluding those operating in China. Rapid increase in demand resulted in increasing addition of capacity worldwide in the recent years. Consequently, the market witnessed an oversupply situation that in turn exerted a downward pressure on prices of aluminum. Reacting to this, significant aluminum capacity was pruned worldwide, especially in developed markets and China, which in turn normalized the supply situation leading to upward movement of prices beginning early 2012. However, production capacity has been increasing in the gulf region during this period, and continues to do so. Resultantly, the region is fast emerging as the next hub for aluminum smelter capacity, given the abundance of energy resources in the region. Transportation represents the largest end-use segment for aluminum worldwide.

The aluminum industry is presently reeling under the influence of high power costs and lower metal prices. Such is the extent of the problem that some major aluminum producers have already announced cuts in primary aluminum capacity, and further cuts are on cards if the scenario continues. The decision to cut unprofitable production capacity was in large part to ensure restoration of aluminum prices. Prices of aluminum have dropped by as much as 30% in early part of January 2012, from their peak levels in 2011. This price drop combined with higher energy prices render production of aluminum unprofitable for manufacturers, forcing production shut downs. Some of the announced cutbacks, however, have given some life to aluminum prices that rose marginally by mid January 2012.

Asia-Pacific represents the largest regional market for aluminum worldwide, as stated by the new market research report on Aluminum. China and India are emerging as the major drivers of global growth in consumption of aluminum. Europe represents the second largest regional market worldwide, followed by the US. Growth in the global aluminum market is projected to be driven by the Rest of World market, which includes the Middle East and Africa. The regional market is projected to post a compounded annual growth rate of 11.1% during the analysis period. Extruded Products represents the largest market segment for aluminum. However, Rolled Products are projected to spearhead growth in the global aluminum market.

Major players profiled in the report include Alcoa, Inc., Aluminium Bahrain B.S.C (Alba), Aluminum Corporation of China Limited (Chalco), BHP Billiton, Century Aluminum Company, Dubai Aluminium Company Limited, Hindalco Industries Ltd., Rio Tinto Alcan Inc., Hydro Aluminium AS, and United Company RUSAL, among others.

The research report titled “Aluminum: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides comprehensive market overview, trends & issues, impact of recession on the industry, segment and end-use market analysis, production and export-import statistics, recent industry activity and profiles of market players worldwide. Analysis and overview is provided for the years 2010 through 2018, for major geographic markets, such as US, Canada, Japan, Europe, Asia-Pacific, Latin America and Rest of World. Market analytics are provided in terms of thousand tons for segments including Extruded Products, Rolled Products, Castings and Others. The study also provides historic data for an insight into market evolution over the period 2004 through 2009.

For more details about this comprehensive market research report, please visit –
http://www.strategyr.com/Aluminum_Market_Report.asp

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

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Global Industry Analysts, Inc.
Telephone: 408-528-9966
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Email: press(at)StrategyR(dot)com
Web Site: http://www.StrategyR.com/

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