A new report commissioned by the International Aluminium Institute (IAI) has estimated that global annual aluminum demand could reach 298mn mt in 30 years.
The report titled, “An Initial Assessment of the Impact of the Covid–19 Pandemic on Global Aluminium Demand,” by the CG Group used International Monetary Fund forecasts to reach its prediction, which acknowledged that demand will falter in 2020. However, it paints an optimistic picture for the years ahead because, COVID-19 notwithstanding, existing fundamentals are strong and newer opportunities are sure to follow.
The IAI report also noted that aluminium is ripe to satisfy contemporary preferences for environmentally friendly transportation methods, infrastructure, energy, and food security. Moreover, the metal is one of the most recycled—and recyclable—materials with 75pc of all aluminum ever produced in circulation today.
Miles Prosser, the IAI’s secretary general, called COVID-19 a pivotal moment for the aluminum industry because perceptions about ESG (environmental, social, governance) had already been evolving, but the pandemic “sharpened those expectations.”
CM conducted a survey and determined 83pc of respondents believed the pandemic’s impact on aluminum consumption would be short-lived. Additionally, most anticipated the Chinese economy would rebound next year, which is consistent with the report’s data.
Fifty-six percent of respondents don’t believe the pandemic will fundamentally alter the supply and consumption of low-cost and well-performing organizations, which can grow their market share on the backs of their dated, high-cost rivals.