The aluminum industry has shown a good side in the first eight months of 2018

Views:4595 Author:Site Editor Publish Time:2018-09-28 09:05:47 Orgin:Site

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In the first half of 2018, global raw aluminum production was 1% lower than the previous year's level. Overall, production in China has declined slightly, while production in the rest of Asia has increased significantly, according to IKB bank, launched by DUS. Experts at the bank expect production to be about 64 million tons in 2018. In Europe, the bank has observed production to be basically stable, but slightly lower in North America. Production in the Gulf countries has also increased again. Global demand for raw and recycled aluminium continues to be driven by the light structure of the automotive industry and good orders from the aviation industry; the good economy of the construction industry in continental Europe and the packaging industry is also encouraging.

U.S. sanctions against Rusal, the world's second-largest aluminum producer, and U.S. tariffs on aluminum imports were the main themes of the first half of 2018 - and still cause a lot of turmoil in the global metal market. Given current political developments, supplies to the aluminium market will become less secure in the coming months. The impact on producers and processors is not entirely predictable, and prices will remain volatile due to market volatility. By the end of the third quarter of 2018, IKB expects the price of raw aluminum to be around $2200 per ton, about $2250 per ton. If from then on, the sanctions against Rusal will be seized on 23 October, marked 2.

Alcoa is concerned that sanctions and tariffs will lead to significant market changes that could drag down the supply chain. Bottlenecks in the supply and delivery of raw aluminium or alumina, as well as rising prices, are a threat. Ultimately, converters and customer industries (such as the automotive, construction or packaging industries) have to pay higher prices, which is neither in the interests of aluminum producers nor customers.

Industry insiders believe that sanctions will have a significant impact on trade flows. The EU is a net importer of raw aluminium and alumina. Sanctions can lead to market changes for all market participants throughout the supply chain. This will also affect the automotive industry and other major customer industries. Some market participants are concerned that supply security and price predictability are no longer guaranteed at the expense of the competitiveness of non European suppliers such as China, India or the Gulf States.

Despite all the uncertainties, all the traffic lights are green for the 2018 aluminum year. In particular, the automotive industry is promoting the use of light metals. As people are more and more aware of the danger of air pollution, the demand for aluminum is increasing. Whether or not electric vehicles will make competition in the future, LNG for trucks and ships will even use hydrogen as the driving energy - making these fuel substitutes closer to the economy, and it is important to reduce the weight. In the automotive industry, the process of replacing heavy metals (such as steel) with lighter weight aluminum is already in progress. This trend is expected to continue with ambitious plans to build the entire electric fleet.

Aluminium 2018 will showcase a wide range of light metal production and processing. The world's largest aluminum fair and conference events will not only showcase major trends in industry innovation, additive manufacturing and electric transportation, but also provide ways to better utilize energy and other resources.