Global Aluminium Market - 2023-2030
Global Aluminium Market reached US$ 152.2 billion in 2022 and is expected to reach US$ 233.3 bllion by 2030, growing with a CAGR of 5.5% during the forecast period 2023-2030.
Investment in the production of aluminium wire rod has grown in popularity recently among investors as well as companies. The need for aluminium wire rod has grown globally as a result of the rise of several industries, including building, transportation, energy, and electronics. Cables, construction wires, and electrical conductors are just a few of the products made from aluminium employing wire rod as an intermediary. The increased demand for these products is expected to lead to an increase in the demand for aluminium wire rod.
Manufacturers in the Europe are moving towards innovations. Therefore, On September 7,2022, Tomra's X-TRACT, a brand-new sensor-based sorting system, is used by Alutrade. Alutrade accomplished 99 percent pure aluminium for use in secondary aluminium manufacturing owing to the X-TRACT, one of TOMRA's cutting-edge X-ray metals sorting systems.
At Alutrade's Oldbury recycling facility in Birmingham, U.K., which processes 42,000 tonnes of garbage annually, the new X-TRACT machine was installed in March 2021. Aluminium cans and various post-consumer building waste products, including windows and doors, are included in the plant's infeed material. Furthermore, Europe holds for nearly 1/3rd of the global market share.
Market DynamicsGrowing Demand for Aluminium Wire Rod
One of the main aspects making it a smart financial decision to invest in its production is the expanding demand for aluminium wire rod. The rise in demand for aluminium wire rod is being caused by the expansion of several industries, including building, transportation, energy, and electronics.
To make the electrical conductors required for lighting, heating, and air conditioning systems in buildings, the construction industry uses aluminium wire rod. Therefore, the grpwing demand for these rods drives the growth of the global aluminium market. On February 9, 2023, At the International Aluminium Conference (IAC) 2023, Vedanta Aluminium, the largest aluminium manufacturer in India, introduces 12 mm Aluminium Wire Rod for the electrical industry.
Vedanta Aluminium is the largest producer of high-quality electrical conductor (EC) grade wire rods with a production capacity of 560 kilo Tons, equipped with innovative equipment from Southwire (USA) and Continuus-Properzi (Italy). These wire rods find critical applications in the electrical industry, such as in the form of wire and cables for transmission and distribution networks, coils and windings, heating and cooling tubes and more.
Increased Packaged Goods Sales
A very thin piece of aluminium foil can offer excellent protection from light and oxygen. These characteristics make it widely employed in primary packaging for goods that over time become sensitive to moisture, microorganisms, and oxygen. Because it lasts longer than other options, it is one of the most popular materials for beverage packaging.
Only 1.5 grammes of aluminium foil and 28 grammes of lamination are needed to package 1000g of a liquid. The carton is protected, has a longer lifespan, and is reliable because of to these 1.5 grammes. As a result, the aforementioned elements fuel the global aluminium market's expansion.
Volatility in Prices
The profitability of aluminium producers can be significantly impacted by the price of raw materials. The demand for aluminum may be impacted if manufacturers are forced to pass on higher costs to consumers in the form of higher prices or must absorb them themselves.
The price volatility of raw materials may also result in changes in supply and demand, which may have an impact on the market's supply of aluminium. A shortage of aluminium on the market may result from companies reducing production or switching to alternative materials as a result of a substantial increase in the cost of raw materials. Consequently, the expansion of the global aluminium market may be constrained.
In February, 2023, In response to the ongoing decline in the LME aluminium price for more than a week, Vedanta Limited has further lowered the prices of its aluminium ingots and aluminium products. According to the most recent pricing data, the company's aluminium wire rod price has decreased by INR 5,000 per tonne or 2% as of February 10 and was INR 238,750-246,250 per tonne, down from INR 243,750-251,250 per tonne on February 7.
COVID-19 Impact AnalysisIt is such a flexible material that its ubiquity, which includes cans, houses, rockets, cars, and other products, is concealed in plain sight. The environmentally friendly material of choice is aluminium, which is widely available and completely recyclable. The pandemic in China was first followed by the closure of factories and ports. Due to the nature of business and the absence of spare capacity, it was not possible to scale up container supply or ships in the short term, which led to detrimental vessel and container shortages and a sharp increase in maritime freight to address the shortfall.
Segment AnalysisThe global aluminium market is segmented based on product, application, end-user and region.
Growing Demand for High Purity Aluminium Drives the Segmental Growth
The demand for high purity aluminium and its compounds are increasing. Hence, manufacturers in the global market is also focusing on the devlopment of the high performance or high purity aluminium.
For instance, in July, 2023, With help from the Queensland government in the form of a $21 million Industry Partnership Programme grant, critical metals producer Alpha HPA will move forward with construction of the US$ 300 million second stage of its Gladstone high purity alumina facility. The company's Stage 1 Precursor Production Facility (PPF, shown) is now running and manufacturing 99.99% pure aluminium products in commercial quantities using its patented licenced solvent extraction and refining technology.
The factory currently produces 5N (99.99 percent) quality aluminium nitrate, with plans to expand to produce high purity aluminium hydroxides, high purity aluminium sulphate, and high purity alumina (HPA, Al2O3). Therefore, pure aluminium segment is expected to register a highest growth rate during the forecasted period.
Geographical AnalysisIncreasing Production Output in China Supplements the Regional Growth
According to data, China produced 3.41 million mt of aluminium in March (31 days), up 2.9% over the same month last year. As industries in Yunnan continued to cut production, the daily output of aluminium fell from 349 mt to 110,000 mt in March. Additionally, the output boost brought on by the restart of businesses in Guizhou and Sichuan was relatively little. From January to March, there was an increase in aluminium production of 4.8%, or 9.92 million mt.
Statistics show that in March, the percentage of domestic aluminium liquid climbed by 8.3 percentage points from the previous month and by 8 percentage points from the previous year. According to a private sector poll, China's factory activity growth stagnated in March as a result of sluggish production and decreased global demand, which increased uncertainties on a post-COVID recovery. Therefore, India is contributing more than 1/3rd of the regional shares during the forecasted period.
Competitive LandscapeThe major global players include Alcoa Corporation, Aluminium Corporation of China Limited, Century Aluminium Company, Rio Tinto, United Company RUSAL, Norsk Hydro ASA, Emirates Global Aluminium, National Aluminium Company Limited, Aluminium Bahrain and Kaiser Aluminium Corporation.
Why Purchase the Report?• To visualize the global aluminium market segmentation based on product, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of aluminium market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.
The global aluminium market report would provide approximately 61 tables, 62 figures and 182 Pages.
Target Audience 2023• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies