An Amag forecast for 2020 has largely been hampered by inconsistent price trends for aluminium, raw material, currency rates and an overall economic scenario.
The company, an Austrian producer of aluminium cast and flat rolled products, cited a CRU market research institute forecast that indicated that global demand for primary aluminium will go up by 1.8pc to 66.1mn mt in 2020.
Minor dips in Europe (0.1pc) and North America (0.7pc) demand will be offset by a spurt in China requirements, which are expected to go up by 2.9pc to 37.2mn mt.
Global production is expected to outpace demand in 2020. The CRU forecast expects a market surplus of 0.7mn mt in 2020.
The global demand for recycling foundry alloys is forecast to go up by 2.9pc, with demand in Europe going up by 2.9pc.
Global demand for recycling foundry alloys is forecast to increase by 2.9 % in 2020.
Amag posted a net income after taxes of Eur 38.6mn ($43.03mn) for 2019, up from Eur 44.5mn ($49.61mn) the previous year.
The price of aluminium decreased by an average of 14pc from the previous year against the backdrop of a trade war between the USA and China, in addition to the weakening automotive industry.
Total shipments at Amag rose to 440,300mt in 2019, up by 4pc from 424,600mt in 2018.
The metal, casting and rolling divisions showed a rise in shipments by 3,200mt, 6,900mt and 5,500mt, respectively, in 2019.
Amag shipped 6,200mt of Al to the aviation sector, 6,100mt to automotives and 4,800mt to packaging industries.
Scrap processing at the Ranshofen recycling centre (RCR) was at 364,600mt in 2019, down from 366,300mt in 2018.
The company announced that due to an upgrade of Ranshofen’s sorting and processing technologies, a scrap utilisation rate of 75pc to 80pc was achieved.
Amag products are used in various sectors like aviation, automotives, sports equipment, lighting, mechanical engineering, construction and packaging.
Amag also hold a 20pc stakes in Canadian smelter Alouette, a producer of primary aluminium.
The company said that after completion of the increased level of pot relining activities in the first half of 2019, production and therefore shipment volumes rose as compared with the previous year.