CHINA May 16 2016 3:47 PM
LONDON (Scrap Register): RUSAL estimates that global aluminium demand rose by 5.6% year-on-year during the first quarter of this year to 14 million tons (MT) compared to 1Q2015. Within this estimate, demand ex-China grew by 2.5% year-on-year to 6.9 million tons.
The strongest demand growth was experienced in India (+6.0% YoY), Middle East (+5.8% YoY), Non-China Asian countries (+3% YoY), North America (+2.7% YoY) and Europe (+2.4% YoY).
North American aluminium market fundamentals remain positive supported by the automotive sector which grew by 4.3% in 1Q2016, with the light truck segment particularly strong. Housing starts remained flat for the quarter at 1.1 million units annualised.
In the Eurozone, the economy has surpassed its pre-crisis high, with GDP growth of 0.6% in the first three months of the year compared to the previous quarter showing its fastest pace in five years.
In South Korea, exports have fallen for 15 consecutive months, due to softening demand from China. In the automotive sector, which accounts for more than 10% of total manufacturing output, vehicle production fell by 3.3% in 1Q2016. In South East Asia, preliminary data suggests that GDP in ASEAN expanded 4.5% annually in 1Q2016 with Vietnam, Indonesia and Taiwan expanding manufacturing.
Asian countries posted an aluminium consumption growth rate of 3% YoY in 1Q2016. China’s primary aluminium consumption was 7.1 million tons in 1Q2016, up by 8.4% YoY.
