04 MARCH 2015AlCircle.com
Qatar Aluminium predicts 6% rise in aluminium demand as autos dominate
Edited by : AL CIRCLE
1 min read
Qatar Aluminium Chairman, Abdulrahman Ahmed Al-Shaibi said in a Doha conference on Tuesday Automobile customers accounts for around 60% of the company’s products. The rising demand for automotive aluminium is pulling the overall demand for aluminium which is rising nearly 6% a year.
The company says the falling oil prices are not affecting the demand for aluminium automotive parts and the company did not have to cut back on production.
The initial drive towards aluminium use in automobiles was the fuel efficiency due to lighter weight. But as analysts predict that the lower oil prices could hamper the fuel efficiency benefit in aluminium cars in future as a result manufacturers are trying to push the recyclability factor.
David Wilson, an analyst at Citigroup says, “At a 75 percent recycled metal content rate, current aluminum auto body usage projections would add only 800 kt to primary aluminum demand by 2020, not a volume to drive market deficits.”
The company says the falling oil prices are not affecting the demand for aluminium automotive parts and the company did not have to cut back on production.
The initial drive towards aluminium use in automobiles was the fuel efficiency due to lighter weight. But as analysts predict that the lower oil prices could hamper the fuel efficiency benefit in aluminium cars in future as a result manufacturers are trying to push the recyclability factor.
David Wilson, an analyst at Citigroup says, “At a 75 percent recycled metal content rate, current aluminum auto body usage projections would add only 800 kt to primary aluminum demand by 2020, not a volume to drive market deficits.”
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