Global demand expected to grow by 4 per cent
Global aluminium demand is expected to grow by 4 per cent in compound annual growth rate (CAGR) between 2018-2020, driven by construction and automotive manufacturing in China.
On the other hand, global aluminium production capacity is expected to shrink by 4 million tonnes or 7 per cent of total production. Consequently, the price of aluminium is expected to rise by 3 per cent CAGR between 2018-2020, according to the Siam Commercial Bank’s EIC report yesterday.
In Thailand, the report forecasts that rising automotive production, the expansion of private construction, especially condominiums and office buildings, as well as growth in the beer, soft drink, and energy drink markets will lead to a 5 per cent CAGR increase in demand for aluminium between 2018-2020.
Price fluctuation, surging imports of finished products, and the imposition of import tariffs by the US are three important factors that aluminium producers and users must monitor closely as these factors will directly impact operations.
