Market Trends of Aluminum Oxide Industry
This section covers the major market trends shaping the Aluminum Oxide Market according to our research experts:
Aluminum Smelting Segment to Dominate the Market Demand
- Aluminum oxide is mostly used in the smelting process to make aluminum. In fact, almost 90% of all aluminum oxide made is used in the aluminum smelting industry.The aluminum oxide is used to produce the primary aluminum metal at a ratio of 2:1 (2 metric tons of alumina produce 1 metric ton of aluminum).
- Aluminum is the second most used metal in the world. It is mostly used in transportation, building and construction, electrical engineering, container packaging, and other industries because it is strong, lightweight, and can be recycled.
- Together, the two aluminum companies set up a joint venture called Elysis to improve this technology so that it can be used on a larger scale and sold to the public. They plan to sell a package of this technology starting in 2024.
- Apple joined forces with these two aluminum companies and the governments of Canada and Quebec to invest USD 144 million in research and development for the future.
- In 2021, the United States produced less than 2% of the world's primary aluminum and was the ninth largest producer of primary aluminum. In 2021, the primary aluminum smelters in the United States ran at 55% of the industry's rated production capacity, compared to 95% in Canada and 88% around the world.Moreover, in 2021, more than 75% of domestic supply came from secondary smelters.
- Also, China made 38.5 million tons of primary aluminum in 2021, which was 3.8% more than in 2020. Due to the ongoing power shortages, China's aluminum smelters and refineries have had trouble getting their work done.
- Based on the above, it seems likely that the need for segmentation will grow during the forecast period.
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Asia-Pacific Region to Dominate the Market
- Due to more investments and production in end-user industries like medicine and pharmaceuticals, electronics, industrial manufacturing, etc., the Asia-Pacific region had the largest share of the global aluminum oxide market.
- China has one of the fastest-growing economies in the world, and almost all end-user industries have been growing because of the country's growing population, higher living standards, and higher income per person. But because of turbulence in international trade and bad geopolitical events, the growth rate is likely to slow down in the first few years of the forecast period. But the growth is expected to speed up toward the end of the forecast period, when conditions and relationships are expected to improve.
- China is the world's top producer of aluminum oxide. Southwest China's Guizhou province is increasingly becoming the largest producer, due to friendly policies and the easy availability of raw materials. Guizhou's abundant bauxite resources have given it an edge in developing aluminum production, as bauxite is the raw material used to produce aluminum products in many industrial processes.
- In 2021, China was the biggest producer of primary aluminum, making about 39 million metric tons. This was a lot more than any other country. In July 2022, China's primary aluminum production rose 5.6% to a record monthly high of 3.43 million metric tons from a year earlier, with smelters ramping up production as power restrictions were eased.
- Also, the World Bureau of Metal Statistics says that in 2021, Japan made about 786.6 thousand metric tons of secondary aluminum, which is about 96.4 thousand tons more than the year before.
- Therefore, all of these things should drive the demand for the studied market in the region over the next few years.
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