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Mirach Indian Aluminum Industry forecast for summer 2012

Indian Aluminum Industry forecast for summer 2012

The aluminum industry on the Indian subcontinent is a highly concentrated sector with five prominent players catering to the majority of the country’s aluminum production. The country has been witnessing growing demand for aluminum in the domestic market accounting for an enviable growth in the sector.

 

The forecast for 2012 global production of aluminum is 42 million tonne to 45 million tonnes driven by rising Chinese output. Both market and non market forces have equally affected the aluminum industry for almost two decades. It is anticipated that the value of the global aluminum market in 2012 will reach USD 112.3 billion.

 

The per capita consumption of aluminum metal in India is less than 1 kilogram whereas it’s estimated to be 25 to 30 kilograms in the US and Europe, 15 kilograms in Japan, 10 kilograms in Taiwan and 3 kilograms in China.

 

Despite the lower per capita demand for the metal, there is heavy demand for aluminum in the domestic market on account of the metal being used in large quantities across a number of industries.

 

India has the credit of being the fifth largest producer of aluminum in the world. The country has a capacity to produce more than 2.7 million tonnes of aluminum per year, making up about 5% of total aluminum production around the globe. India boasts of massive bauxite reserves of about 3 billion tonnes. The country has been witnessing phenomenal growth in aluminum production over the past ten years.