Global Aluminium Demand to Hit Record High Post-coronavirus

- Growing consumer focus on sustainability drives demand growth
- The transport, power, packaging and construction sectors will see the largest growth in demand

A new report shows that global aluminium demand will increase by almost 40% by 2030, and the aluminium sector will need to produce an additional 33.3 million tonnes to meet the increase in demand across all industry sectors, or from 86.2 million in 2020. tonnes increased to 119.5 million tonnes in 2030.

The study, titled Opportunities For aluminum In A Post-Covid Economy, conducted by business intelligence analyst CRU International on behalf of the International Aluminium Institute (IAI), details the Covid-19 pandemic. Aluminum demand in key industry sectors and regions in the post-pandemic economic situation. Transportation, construction, packaging and electrical industries are the four key sectors driving demand, accounting for 75% of total aluminium demand.

Two-thirds of the growth is expected to come from China, where demand will reach 12.3 million tonnes, the rest of Asia at 8.6 million tonnes, North America and Europe at 5.1 million and 4.8 million tonnes respectively. These four regions alone will account for more than 90% of new global aluminum demand.

Commenting on the report's findings, IAI Secretary-General Miles Prosser said: "The IAI commissioned this report to better understand the drivers of future aluminium demand and to determine what we need to do as an industry to meet consumer demand and demand and Sustainability expectations. The data in today's report shows that as society becomes more concerned with efficiency and sustainability, the market opportunity for aluminium also increases. In every industry, key demand drivers are linked to sustainability related to climate change issues.”

According to the report, decarbonization policies combined with a transition to reduce the use of fossil fuels in the transport sector will increase aluminium demand for electric vehicle production to 31.7 million tonnes by 2030 (19.9 million tonnes in 2020).

Demand for renewable energy will also increase demand for aluminium, which is used to make solar panels and to replace existing copper cables used for power distribution. Overall, aluminium demand in the power sector will increase by 5.2 million tonnes by 2030.

When the ten-year period ends, demand for aluminium in the construction sector will increase by 4.6 million tonnes. Among them, rising demand in the urbanization sector will account for 44% of the total growth, and this increase will come from Asia (excluding China).

Due to the growing popularity of canned beverages in North America, Europe and China, the material demand for aluminum packaging will increase from 7.2 million tons in 2020 to 10.5 million tons in 2030. The surge in demand for eco-friendly packaging combined with new products is also driving the growth.

Zaid Aljanabi, Head of Aluminium at CRU, said: “The aluminium industry has an opportunity to continue advancing its sustainability credentials, listen and respond to consumer expectations, and work towards providing consumers with more sustainable products and services along the value chain. CRU Consulting Advising clients in the aluminium industry for over 40 years, providing clients with independent and proprietary advice across the entire value chain."

Mr Prosser added: “As we seek to achieve a sustainable future through a decarbonised world, aluminium has the qualities consumers are looking for: strong, lightweight, versatile, corrosion resistant, good thermal and electrical conductors, and can Recycling. About 75% of the nearly 1.5 billion tons of aluminum produced to date is still in active use. This metal was the material at the forefront of numerous industrial and engineering innovations in the 20th century and continues to power a sustainable future Meeting growing demand sustainably is a challenge across the value chain, but the industry has the necessary expertise and enthusiasm to find the solutions needed to reduce the carbon intensity of our primary metals."