Global Secondary Aluminum Alloy Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Secondary Aluminum Alloy Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Production of secondary aluminum alloys is the process of recycling aluminum scrap into aluminum that can be used again—an environmentally sound process that is 92 percent more energy efficient than primary production. The increased adoption of recycled aluminum in manufacturing has created significant economic and environmental wins for both industry and consumers.

Market Overview:

The latest research study on the global Secondary Aluminum Alloy market finds that the global Secondary Aluminum Alloy market reached a value of USD 35967.76 million in 2022. It’s expected that the market will achieve USD 46225.0 million by 2028, exhibiting a CAGR of 4.27% during the forecast period.

Terminal consumption shows freezing point

The concentration of terminal demand (80% reflected in the automotive market) is a significant problem. After the development of the automotive industry has entered a bottleneck, the problem of overcapacity has become prominent. However, looking at the epidemic now, the secondary aluminum alloy market has fallen due to poor demand, and as the waste aluminum material continues to resume work, the supply of waste aluminum material has gradually recovered, and the price of secondary aluminum alloy is difficult to have long-term cost support. The low-end secondary aluminum alloy products continue to arrive in Hong Kong due to imported aluminum alloy ingots, and the price impact is even more significant. The outbreak of COVID-19 has reduced the market demand for secondary aluminum alloys and increased the impact of imports and exports. There are still many variables in the impact of the epidemic on the secondary aluminum market.

The unstoppable development of emerging industries

The difficulties of the traditional secondary aluminum alloy industry still cannot hide the light of the emerging secondary aluminum alloy industry, and the emerging secondary aluminum alloy industry will be unstoppable. The decline in GDP growth and the expansion of the aluminum processing industry's production capacity have caused the aluminum processing industry to also face the problem of overcapacity.
For the aluminum processing industry, increasing the proportion of scrap aluminum is the most direct way to reduce costs. Judging from the current flow of scrap aluminum, the emerging secondary aluminum alloy industry is mainly in the field of aluminum rods and aluminum plates in deformed aluminum alloys. In addition, considering the technical difficulty and the source of scrap aluminum, aluminum rods will become the most rapid development of secondary aluminum due to the large amount of scrap aluminum resources and low technical threshold. The aluminum plate will become the sector with the largest development space in the next few years.

Energy conservation and environmental protection policies drive market development.

The secondary aluminum alloy industry uses various scrap aluminum materials to produce aluminum alloy ingots. Compared with the production routes of bauxite, alumina, electrolytic aluminum, and aluminum alloys, it reduces heat energy consumption and greenhouse gas emissions, and realizes the recycling of aluminum resources. The secondary aluminum alloy industry has significant social benefits in terms of resource conservation, energy conservation, emission reduction, and environmental protection. The secondary aluminum alloy industry is an industry supported by various national energy conservation and environmental protection policies.

The number of scrap aluminum materials in developing countries has increased.

Aluminum is one of several metals that are relatively suitable for recycling. Developing countries have produced a large number of aluminum products in the past decade. As the service life of aluminum products expires, more and more discarded aluminum products flow to the market. The emergence of this situation has promoted the rapid development of the secondary aluminum alloy industry to accommodate the growing demand for recycling of waste aluminum materials.

Raw material price fluctuation risk.

The main products of the secondary aluminum alloy industry are aluminum alloy ingots of various specifications, and the main raw materials are various types of waste aluminum materials. The cost of waste aluminum materials constitutes the main production cost of the secondary aluminum alloy industry. If the purchase price of scrap aluminum materials fluctuates sharply, it will affect the operations of companies in the industry.

Region Overview:

Geographically, Asia-Pacific held the largest market share – 60.1% in 2022.

Company Overview:

Lizhong Alloy Group is one of the major players operating in the Secondary Aluminum Alloy market, holding a share of 3.82% in 2023.

Lizhong Alloy Group

Lizhong Alloy Group, founded in 1984, is an enterprise group which focus on R&D and manufacture of aluminum casting alloy and wrought aluminum alloy. The products are applied mainly in automobile, high-speed rail, electrical and electric, aerospace, shipping, military industry etc.

REAL ALLOY

REAL ALLOY is the global market leader in third-party aluminum recycling and specification alloy production. They convert aluminum scrap and by-products into reusable aluminum metal for a growing number of applications across various industries.

Segmentation Overview:

As for product types, the Aluminum Ingots segment held the largest market share in 2022.

Application Overview:

By application, the Transportation (Automotive, Motorcycle, etc.) segment occupied the biggest share from 2018 to 2022.

Key Companies in the global Secondary Aluminum Alloy market covered in Chapter 3:

Befesa
Audubon Metals
Raffmetal
Alumetal Group
Sigma Group
SHUNBO
AMAG Group
Daiki Aluminum Industry
Oetinger Aluminum
Huajin Aluminum
Superior Aluminum Alloys (OmniSource)
TRIMET
Owl's Head Alloys
Lizhong Alloy Group
REAL ALLOY

In Chapter 4 and Chapter 14.2, on the basis of types, the Secondary Aluminum Alloy market from 2018 to 2029 is primarily split into:

Liquid Aluminum
Aluminum Ingots
Others

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Secondary Aluminum Alloy market from 2018 to 2029 covers:

Transportation (Automotive, Motorcycle, etc.)
Mechanical Equipment
Communication & Electronics
Building & Construction
Household Appliances
Others

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)