History has proven that demand of Aluminium surpassed the prediction many times when compared to other metals in the world.
Following are the 5 vital prospects that sees aluminium industry is on the brighter side in coming years.
1. Indian aluminium demand shot up by 38% in five years from 2009 to 2014. At present India is world’s fifth-largest consumer of aluminium. Top four consumers are China, the US, Japan and Germany. It is expected that the robust demand fundamentals have probability to lift the country to top 3 in 2016-2017.
2. The Indian recovery on economy is better than many country and currently growing at 7.9% in FY16. This offers positive growth in aluminium demand on account of sturdier consumption and investment. Also government’s push on power sector created optimistic vibes for aluminium industry because power sector is a powerful demand driver for aluminium consumption in India.
3. The demand in US of Aluminium is expected to continue strong that’s growing at a CAGR of 4-5% in upcoming years. It is due to housing recovery gains traction, improved car sales and also aluminium demand benefits showed by new applications, particularly in the automotive sector. Further Western Europe to grow moderately amongst economic uncertainty. The aluminium demand there is predictable to grow at around 2.5%.
4. Demand for aluminium by Chinese is expected to growing at around 6-7%. Demand growth will be rising in consumer-related sectors. Even if there is a slowdown exports is on full swing by china to other countries.
5. On an encouraging side, the reduction in crude prices since months is expected to aid on the cost front. With coal availability showing signs of improvement in India. Its production and transportation is showing really opportunistic signs.