Aluminium Industry outlook
As we move on to the New Year, 2022, with higher hopes and new prospects of market for aluminium, we recount all that happened in the global aluminium industry that has influenced the global aluminium market. All the facts mentioned here are sum up taken from different credible sources. Like any other industry, aluminium industry was affected by the Covid-19 pandemic. The depressing momentum picked speed from the second half of 2021. The easing pandemic situation resulted in increased demand for aluminium related products in the electronics, automobiles, packaging industries, etc. The International Aluminium Institute reports the world primary aluminium production at 61.792 million tonnes during the period of January-November 2021 compared to 59.629 million tonnes a year before, noting an increase of about of 3.63 per cent
Aluminium recorded a 13-year high price of $3172 a ton in 2021. The soar in price of aluminium being mainly related to strong demand and supply concerns. The downfall in the global aluminum production was because of the power crisis in China and Europe. Primary aluminium production is highly energy-intensive, with electricity making up a large share of the energy consumed. Approximately 13,000- 17,000 kWh of electricity is consumed to produce 1 tonne of aluminium, the reason which contributed to rise in aluminium prices despite of strong demand. Coup in Guinea, the world’s largest bauxite reserves, was another reason for the price rise of aluminium. Traders and analysts keeping close eye on the aluminium industry also believe hike in aluminium prices in 2022 with the contributing factors being unresolved. This year aluminum prices could rise by 6% because of a high demand from the automotive industry, increased prices of energy resources and a supply shortage arising from China diminishing production to decrease СО2 emissions .
The global primary aluminium production saw an increase in the year 2020 from 59.629 million tonnes to 61.792 million tonnes in 2021. Bauxite production is estimated to see a rise of 3.8% to reach 372.8 million tonnes, while alumina output recorded a growth of 4.97 per cent from 110.050 million tonnes from January-October 2020 to 115.524 million tonnes from January-October 2021.
Besides the entire facts stated above, some players may invest and collaborate on increasing production to narrow the differences between supply and demand so it could put pressure on aluminium prices, the impact of which could be felt in the second half of 2022.