Rising demand from APAC to keep aluminium rods market buoyant until 2019

The global aluminium wire rods market is slated to grow at a CAGR of around 2 per cent during 2015-2019, revealed data released in a recently published market analysis. The increased investments in infrastructure are driving the growth of this market. 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 wire rods during the forecast period.

The increased usage of particular conductors is also expected to drive the market growth during the forecast period. Special conductors such as Al-59, ACAR, and AACSR deliver superior performance in terms of strength to weight ratio without compromising on current carrying capacity. These conductors are anticipated to address the transmission issues within the power grid sector.

According to the report, Electrical grade aluminium wire rod is the most popular segment (two other segments being Alloy and Mechanical) and accounted for 58 per cent of the market share during 2014. This segment is expected to reach a market volume of around 2 million metric tons by the end of 2019. Electrical grade aluminium wire rod is majorly used for the production of conductors and cables that are used for transmission and distribution applications.

The conductors and cables sector is the largest consumer of aluminium wire rods and had a market share of around 78 per cent during 2014, revealed data published in the report. The usage of aluminium wire rods in this sector is expected to grow at a rate of 2per cent during the forecast period. EC grade aluminium rods are widely used for conductor production for transmission and distribution purposes followed by alloy grades, stated the report.