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Shrinking Demand Of Aluminum Overseas

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by - 10/16/2012 3511 Views

Demand for aluminum is greatly drowned because of oversupply and excessive production of aluminum products.

 

 

In this fast growing aluminum market, the demand for aluminum scrap is shrinking at the rate of 4-5% per annum. The main reason for this is because of oversupply, shrinking demand in the downstream market, falling prices and excessive production of aluminum products.

                                    

According to the preliminary estimates from the Aluminum Association, the demand of aluminum in the US and Canada is estimated 13.467 billion lb during the first half of the year 2012. Even though countries like US, Europe, India and Thailand are not self sufficient, they export aluminum to South Korea due to rise on prices. The main reason for the demand of aluminum is because of two factors, LME prices and increase in the exchange rate of dollar value.

Demand of aluminum in India is triggered by the power transmission industry. It is estimated that the growth of aluminum metal will increase its growth rate almost to 13%-15%. It also increases its demand because of the metal houses in buses, trucks, as well as railway wagons; the new generation of aluminum cars due to fuel economy will trigger the demand for aluminum globally.   

It is pointed out that the significant application of aluminum has increased in many areas, besides electrical and electronics. For the next five years or one decade it is sure that the demand of aluminum in India grows by 13% to 15%.  

 

Category : Metal

Tags : Falling prices, Excess use of aluminium products


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I was born on February in one of the greenest places in this world called Nagercoil, India. I still live in Nagercoil, with my mom, dad, and my cute & lovely sister. When I was born, my sister was only 2 years old and even though she was a kid she cared me a lot at that time. Now I’m a te .... more info

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