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29 APRIL 2019 AL CIRCLE

India’s aluminium wire import to drop in 2019 after stupendous growth in previous year

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

Increasing demand towards diverse, innovative product grades for electrical and automotive applications are found consistently stimulating the aluminium wire market size across the globe. Composed of aluminium, these wires exhibit corrosion protection properties and find a wide array of usage in the products including transformers, building wires, heat sinks in industrial segment, and electrical appliances.

Global primary aluminium production was over 5 million tonnes in 2017, while the sales were over 95 million units. By 2024, aluminium wire market revenue is slated to exceed US$ 65 billion.

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In this background of increasing aluminium market size globally over the past few years, India neither shied away from marking a stupendous growth in aluminium wire import in 2018. According to our third-party data, India’s estimated import volume in 2018 was at 84,444 tonnes, compared with 15,315 tonnes in 2017 and 20,266 tonnes in 2016. This shows India’s aluminium wire import in 2018 had grown by about 451 per cent from 2017 and 316 per cent from 2016, as shown in the graph below.

The above graph also indicates that India’s estimated aluminium wire import volume fell in 2017 from the previous year and then soared high in 2018. However, the growing trend of the previous year is not likely to continue in 2019 as the import volume is likely to drop to 71,883 tonnes, down 15 per cent year-on-year.

As far as India’s aluminium wire import cost is concerned, 2018 had seen a growth in consequence of the rise in import volume. The estimated import cost in the said year was at US$208 million, up 511 per cent from US$34 million in 2017 and 407 per cent from US$41 million in 2016.  In 2019, the estimated import cost is like to stand down by 12 per cent to US$183 million, after a sweeping rise in the previous year.

India’s 48 per cent of aluminium consumption is in the electrical sector and thus, wires form a large portion of the total aluminium product import by the country. In 2019, India is estimated to import a maximum amount of aluminium wire from Malaysia, totalling at 55,375 tonnes at US$140 million, followed by Bahrain and Oman, totalling 5,981 tonnes at US$14 million and 5,581 tonnes at US$12 million.

Tagged with:

India Aluminium Market

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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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