Hot search: Logistics  Lexus  market  wool  potential  service  Consumer  Insurance  Kane  water 
 
Home > News > Economy > Content

Middle East Will Be The Leading Supplier for The Growing World Metal Needs

increase font size  reduce font Add date: 2016-11-26  Hits:100
Core prompt: With the increasing use of aluminium in automotive industry over 16 MT of new aluminium capacity is expected to hit the market by 2015. And after China, the M

With the increasing use of aluminium in automotive industry over 16 MT of new aluminium capacity is expected to hit the market by 2015. And after China, the Middle East will be the leading supplier for the growing world metal needs.

Experts said that the peculiar economics of China’s aluminium industry, and its effect on the global cost curve were stand outs of the morning session of the final day of Arab International Aluminium Conference which the increased prevalence of aluminium in the auto industry while sustainability and safety dominated the rest of the day.

Senior executives from Qatalum, Ma’aden, Soahr Aluminium, Dubal, Emal, Hydro and other firms took part in panels, workshops and presentations making the future of GCC aluminium the main focus of the conference, through its relationship with the rest of the global industry and the macro economy.

In the first session of the day, entitled ‘What will the Aluminium Industry Policy in China be for 2012 to 2013 Mr Paul Adkins director of AZ China Limited and Mr Eric Zhang, Analyst at SMM presented on the peculiarities of the Chinese industry, which persists with enormous production despite heavily subsidised losses in certain provinces in particular. 

As Adkins noted, China Sits in the top quartile of the global cost curve, and its industry consumes scarce energy resources is forced to import raw materials, and jeopardizes environmental integrity, yet 10 MT of new capacity are still to come online. Why on earth do the Chinese persist with making aluminium?” he asked rhetorically.

He said that “:As Westerners and as analysts and corporates, we focus on the markets, the industry, equities, P&L, capital flows, ROI, etc. But by doing so, we can miss the key point: for the Chinese Communist Party, aluminium is an important conduit for the development, urbanization and modernization of China reminding the audience that China’s aluminium industry has been privatized if such a term is accurate in such a Statist country only one generation.”

Mr Eric Zhang forecast that domestic aluminium prices will face many uncertainties in 2013 and are subject to LME aluminium prices to a large extent. SMM expects domestic aluminium prices to fluctuate between CNY 15,000 per tonne to CNY 17,500 per tonne in 2013.

The role of China was a theme carried into the next session with a presentation by Mr Jorge Vazquez MD of Harbor Aluminium Intelligence, who spoke to delegates on who is winning and losing in the global aluminium industry and supply chain today.

He said that “Who is getting the value? It is not the producer for sure. Today, consumers are getting great value ever with a graph of real LME aluminium prices at a cycle bottom below USD 2,000 per tonne compared to historical average of USD 2,650 and a high of about USD 4,700.

He finished by forecasting two main sources of growth in next five years: Emerging Asia including the Gulf and the Americas. Over 16 MT of new aluminium capacity should hit the market by 2015, two thirds of this in China for domestic consumption. The Middle East too is well placed. We see the Middle East as the leading provider for growing world metal needs ahead and Americas, Europe and South East Asia as increasing import players.

Mr Shambhu Prasad senior Expert at Gulf Organization for Industrial Consulting noted that Aluminium usage has increased to 140 kilogram per car in 2011 predominantly in drivetrain, chassis and suspension and body. The automotive industry is the largest market for aluminium castings and these account for more than 50% of aluminium used in cars.

 
 
[ NewsSearch ]  [ Send Fav ]  [ Share ]  [ Print ]  [ Send Report ]  [ Close ]

 
Total0bar [View All]  Related Comments

 
Photo Recommended
Recommend News
Click Rank
 
Home | Products | Suppliers | News | Tradeshow | Sitemap | Message | RSS Feed