With the rising number of automobiles across the globe, the aluminium market has seen rapid growth in the last few years. The aluminium market is expected to expand further with the increase in the number of vehicles, as the maximum demand for aluminium is in the growing transport industry. Increased construction activity is also responsible for the rapid growth of the aluminium market.
Aluminium and its top uses
Aluminium is a metal found in abundance in the earth’s crust. It is silvery white in colour, soft, non-magnetic and ductile in nature. Aluminium makes up for about 8 percent of the earth’s crust by mass. Due to its low metal density and resistance to corrosion, it is one of the most favoured metals in the market.
It can be moulded into thin sheets which have high strength and are durable. Many industries such as transport, durables, packaging, construction, machinery, and equipment make use of aluminium metal. The metal is exceptionally lightweight, possesses a high degree of conductivity and can be allowed.
What drives the growth of the aluminium market?
The aluminium market is expanding globally due to growth in the transport industry and improvement in aluminium manufacturing technologies. A few of the driving factors for the growth of the aluminium market include:
- The improvement in the technology of manufacturing and its use in automobiles due to its light weight are major reasons for growth in the aluminium market.
- Being a good conductor of electricity, aluminium is widely used in electrical transmission lines.
- It also has a high volumetric energy density and therefore is used as a primary propellant in space shuttles.
- Aluminium has various industrial applications due to its resistance to corrosion, reflectivity, and recyclability.
- It can also be used in food packaging and pharmaceutical industry due to its non-toxic nature.
- Aluminium use has also increased in buildings and constructions, increasing the demand for aluminium production.
Global Market Size and Analysis
In the year 2016, aluminium production declined by 3 percent. This was due to the planned supply cut from China which is one of the leading producers of aluminium. China produces more than half of the total production of aluminium. However, cutbacks were planned by China for its aluminium and Alumina production in the second half of 2017.
With this fall in supply, aluminium will end in a deficit and is expected to remain in the condition of a deficit for the next two to three years with overall supply loss expectations.
Regional Analysis and future predictions
As China plans to gear up the new air pollution prevention methods and various other control action plans, its aluminium production capacity is set to decline in the coming years. Though, due to the increasing global population, the demand for aluminium and products made from aluminium is going to increase.
With the use of aluminium instead of steel in certain truck models and increased use of aluminium in vehicles, the consumption of aluminium is expected to increase in the coming years by the automobile industry. Also with the increase in fuel efficiency and standard of vehicles used, the demand is expected to increase further.
Moreover, airlines in the US and European Countries are replacing their aircraft models with newer and more fuel-efficient models, due to which the consumption of aluminium is expected to increase.
In developed countries like the U.S., Japan, and European Countries, aluminium is used more in lightweight vehicle production which makes cars more fuel efficient and environmentally friendly. While the infrastructure sector consumes high volumes of aluminium in developing countries like India and China to satisfy the demand for rapid urbanization.
Career opportunities in Aluminium Market
There are excellent growth opportunities in various sectors including passenger cars and commercial vehicles. This makes future career opportunities in aluminium based automotive industries grow exponentially. The major driving forces in this sector are the increased use of vehicles, regulations by fuel companies and the need for emission control. Other factors that affect the industry include stringent safety regulations and an increase in gasoline prices.
Significant volumes of aluminium are used for construction work, increasing the demand for aluminium substantially and thereby offering attractive career opportunities in the construction industry.
The rapid use of aluminium as a metal in various sectors has increased the opportunities and income of people engaged in the trade of aluminium. Workers directly deployed by the U.S. Aluminium industries earn more than the national average.
Also, growth in the aluminium industry translates into more opportunities for ancillary industries such as transportation, banking, insurance etc. creating further opportunities for employees.