Increased car sales are driving the aluminum market

The global automotive aluminum market will grow by an average of 7.77 percent in revenue from 2014-2019.

Aluminum and its alloys have unique properties such as lightness, high tensile strength, high corrosion resistance, which makes it possible to replace steel, which is traditionally used for the production of car bodies and their components. Aluminum offers a fast, cost effective and environmentally friendly way to improve fuel economy while reducing emissions and increasing engine performance. These benefits can be obtained by maintaining or even increasing the longevity and safety of vehicles.

Recently, the use of aluminum and its alloys in passenger and commercial vehicles has been steadily increasing. A car with aluminum components is more than 24 percent lighter than a car with steel components. One of the main trends emerging in this market is the increase in the use of aluminum elements in vehicle structures. With increasing stringency in government regulations and new initiatives to reduce emissions, the demand for aluminum is growing more and more in the automotive industry.

According to the analysis, one of the main driving factors in the global use of aluminum is the growth of global car production and increased sales of cars. The demand for cars directly affects the demand for aluminum in the automotive industry. Environmental requirements, in particular for passenger cars, are becoming increasingly stringent around the world, which is an important driver of the demand for aluminum in car manufacturing.

In addition, a report from industry analysts said that fluctuations in aluminum prices are of concern to suppliers to the global automotive aluminum market. As aluminum prices have risen over the years, the operating costs of suppliers have increased significantly, which negatively affects their profit margins today. The main suppliers in the global aluminum market are: Alcoa, RUSAL, Aluminum Corp. from China, Rio Tinto Alcan.