01 SEPTEMBER 2011China Aluminium Network
Aluminium: Demand to remain strong?
Edited by : AL CIRCLE
1 min read
The demand for aluminium has been strong in recent years. However aluminium industry being cyclical in nature, it could see a downturn in demand with the recent slowdown being witnessed in Indian and world economies.
The main end users of aluminium are the transportation, power, packaging, consumer durables and construction sectors. The usage pattern for aluminium in the sectors mentioned is different in India as compared with the rest of the world. While globally, the transportation and construction sectors are the major consumers of aluminium, in India, the bulk of the demand is accounted for by the power sector, followed by transportation.
The outlook for most of the demand drivers is positive but the recent slowdown witnessed in construction and transportation sector due to high inflation and rising interest rates could play spoil sport for domestic demand. The power generation target is also too ambitious which could further lower aluminium demand.
The main end users of aluminium are the transportation, power, packaging, consumer durables and construction sectors. The usage pattern for aluminium in the sectors mentioned is different in India as compared with the rest of the world. While globally, the transportation and construction sectors are the major consumers of aluminium, in India, the bulk of the demand is accounted for by the power sector, followed by transportation.
The outlook for most of the demand drivers is positive but the recent slowdown witnessed in construction and transportation sector due to high inflation and rising interest rates could play spoil sport for domestic demand. The power generation target is also too ambitious which could further lower aluminium demand.
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