Aluminum Industry Update: Here’s What Happening In The Global Aluminium Market

Valued at USD 167.5 Billion in 2021, the global aluminium market is projected to reach the value of USD 230.9 Billion by 2028 at a compound annual growth rate (CAGR) of 5.5%. In this article, we will unwrap what’s happening in the global aluminium market and major industry updates industry across America, Europe, China, India etc.

What Is The Global Scenario?

• Sustainable Transportation Driving Growth In North America- The Aluminum Association has released a report outlining the growth potential for the North American aluminium market in sustainable transportation. According to the 2023 North American Light Vehicle Aluminum Content and Outlook report, sustainable transportation will increase the demand for aluminium content by almost 100% by 2030, resulting in nearly 1000 pounds of aluminium per vehicle. The key components that will see the growth of aluminium in electric vehicles include battery housings, electric motors and drives, door sills and rockers. By 2030, the average electric light-duty truck will contain 644 pounds of aluminium. In the same year, SUVs and pickups will account for almost 85% of the battery-electric vehicle market.
• Fall In Aluminium Production In Global Aluminium Market– China’s unwrought aluminium and aluminium exports fell 15.4% YoY from January 2023 to March 2023. Incomplete statistics from 11 listed aluminium companies in China reveal that Chalco’s alumina production will be 17.64 million tons in 2022, while Yunnan Aluminum Co. Ltd. plans to produce about 1.4 million tons of alumina, 2.55 million tons of electrolytic aluminium, and about 1.37 million tons of aluminium alloys in 2023. In Europe, including Russia, alumina production fell for the seventh consecutive month to 492,000 tons in February 2023 due to the energy crisis. In America, South American alumina production fell for the second consecutive month to 936,000 tons in February 2023, while North American alumina production fell to 197,000 tons.
• Energy Efficiency Improvements In Yunnan– The Yunnan Provincial Development and Reform Commission has released a draft plan to promote energy efficiency improvements in the aluminium industry and support the green and low-carbon transformation of the sector. The plan encourages electric aluminium companies to participate in power construction and ensure the supply of electricity and coal.

What Is The Indian Market Outlook?

The increasing demand for aluminium in sustainable transportation presents an opportunity for the Indian aluminium industry to expand its market share. India’s aluminium sector is the third largest in the world, producing nearly 4 million metric tons of aluminium annually. As India is rapidly adopting sustainable transportation, including electric vehicles, the demand for aluminium in the sector is expected to grow. The Indian government’s focus on promoting electric mobility and investing in electric vehicle infrastructure is expected to drive the growth of the aluminium industry in India.

OFB’s Insight

China’s decreasing aluminium exports provide an opportunity for Indian aluminium companies to increase their exports to other countries. In addition, India’s abundant bauxite reserves provide a competitive advantage for Indian companies in the aluminium market. As India aims to achieve a self-reliant economy, the aluminium industry can play a significant role in achieving this goal by reducing dependence on imports and increasing exports. Overall, the Indian aluminium industry has a positive outlook, with potential for growth in both domestic and international markets.

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