Aluminium Metals Market Trends

Key Emerging Trends in the Aluminium Metals Market

Meeting global emission standards is a major challenge for car makers worldwide. To tackle this issue, they are increasingly using more aluminum components in vehicles. This strategy helps reduce the overall weight of the vehicle, leading to improved fuel efficiency, better performance, and lower emissions. Automotive component manufacturers are actively involved in designing and developing aluminum automotive parts to meet the growing demand in the automotive sector.

One notable example is Sapa AS, a leading manufacturer of aluminum products, which introduced the first-ever automotive brake liners made from aluminum. In 2016, the company unveiled aluminum brake liners for cars that were approximately 600 grams lighter than the traditional steel brake liners. This innovation showcased the potential of aluminum in creating lighter and more efficient automotive components.

Looking ahead, the trend of developing fully aluminum-bodied pickup trucks and cars is expected to gain popularity. In 2015, Ford Motor Company made headlines by launching the world's first aluminum-bodied pickup truck, the Ford F-150. This innovative vehicle was nearly 700 pounds lighter than its steel-bodied counterpart, making it faster, more durable, and visually appealing. With more automotive manufacturers adopting aluminum for production, the demand for this metal in the automotive sector is set to rise.

In addition to the shift toward aluminum, there is a growing emphasis on the use of recycled aluminum in developed markets. Regions like North America are witnessing a surge in the consumption and production of recycled aluminum, surpassing primary production. This trend reflects a preference for sustainable production methods for aluminum. Aluminum's complete recyclability, coupled with lower production costs compared to primary production, is driving the demand for recycled aluminum. Choosing recycled aluminum also brings environmental benefits, such as reduced greenhouse gas emissions and energy consumption, without compromising natural resources.

The trend of aluminum recycling is not limited to developed markets. Developing countries like South Korea, China, and Brazil are also establishing aluminum recycling facilities to address the increasing consumption of aluminum in these regions. For instance, in 2016, Brazil successfully recycled 290.1 thousand tons of aluminum cans, showcasing the potential for further growth in recycling efforts.

In conclusion, the automotive industry's pursuit of eco-friendly solutions to curb emissions has led to increased adoption of aluminum components. This shift is not only evident in the development of lighter vehicles but also in the growing use of recycled aluminum to meet sustainability goals. As the trend continues, it is expected to reshape the global aluminum market, with both developed and developing markets actively participating in the move toward more sustainable practices.