India on the fast-track of development: To import US$115.5 mln worth aluminium bar rods in 2017

The global market for aluminium bar rods and profiles is projected to grow at 5.7 per cent CAGR from 2016 till 2020, reveals data in a recently published market research report. During 2009-2015, the market grew at a CAGR of 7.4 per cent with aluminium alloy profiles accounting for 96 per cent of the global demand and non-alloyed aluminium bar rods and profiles contributing to only 4 per cent of the market share. While the United States, Germany, Italy, and France still remain the largest market, the APAC is estimated to grow at a higher rate with China leading the way as the key demand driver followed by India as the fastest emerging market for aluminium bar rods and profiles.

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China currently constitutes 7.6 per cent of the global aluminium bar rods and profiles market. Its production volume of the particular aluminium downstream product category has increased significantly over the last three years. This has made the country less reliant on the product's imports. China imported 69,194.4 tonnes of aluminium bar rods and profiles in 2015, which came down by 1.48 per cent to total at 68163.61 tonnes in 2016. In 2017, till October, China is estimated to import 64,723.9 tonnes of aluminium bar rods and profiles, down further by 5.04 per cent YoY.

India, though quite different a socio-political system from China, is estimated to grow as a market for aluminium bar rods and profiles at a comparable rate if not higher over the forecast period of 2016-2020. The country imported 39,359.91 tonnes of aluminium bar rods and profiles in 2016, up 20.89 per cent from the previous year when the volume stood at 32,558.04 tonnes. In 2017, till October, it is estimated to import 41,487.41 tonnes from the international market, up 5.4 per cent YoY.

The cost of imports of aluminium bar rods and profiles for both the countries has remained almost unchanged over the last three years. In 2017, the import market for the particular product segment is estimated to be valued at US$115.5 million and US$378.3 million (data taken till October) for India and China respectively.

The top aluminium bar rods and profiles supplying countries for India in 2016 were Australia (12225.6 tonnes), Bahrain (1441.8 tonnes), Oman (1836.5 tonnes), China (11005.14 tonnes), and Nepal (936.9 tonnes). For China, the top five aluminium bar rods and profiles exporters in 2016 were Germany (3222.5 tonnes), Japan (4856.9 tonnes), Malaysia (913.007 tonnes), Russian Federation (1291.7 tonnes) and South Korea (6977.6 tonnes).

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China despite its recent slowdown has been devouring a lot of semi-finished aluminium products in the recent years, thanks to its ever expanding end user industries. Developing economies such as India are heavily investing in infrastructure activities to improve industrialization. Initiatives like "Make in India" are anticipated to increase the demand for aluminium rods further during the next five years.