Demand up for aluminium in European car industry –Automotive MMI rises in June

The Automotive Monthly Metals Index for European market rebounded from a dip in May to move up in June this year, revealed a recent analysis by MetalMiner analyst Fouad Egbaria. This is in contrast with the total car sales number that witnessed a drop in some European markets, including in the UK. Due to negative sentiment after Dieselgate, sales of diesel vehicles have dived in some parts of Europe in the past few months over concerns that “authorities will raise costs or otherwise make living with diesel engines a less attractive proposition for owners,” MetalMiner noted.

Aluminium remains a significant material for car body and parts manufacturing. According to an earlier directive, the amount of light, recyclable aluminium in European cars will have to be raised to 180 kg on average by 2020, as harmful carbon emissions need to be reduced significantly. This will result in an increasing demand for aluminium rolling sheet and extrusion components, said Gerd Gotz, director general of industry body European Aluminium.

It is in this context that the growth in June automotive MMI can be viewed as an encouraging progress.

{googleAdsense}

“Although the increase was small, the one-point jump is an encouraging sign, as it marked the first increase for the sub-index since early this year, when it jumped from 82 to the February reading of 92. After that 92 mark, the sub-index posted four straight months of decreases,” Egbaria explained.