Aluminium Billet Production set to climb at an annual compound annual growth rate of 4.4 per cent from 2010 to 2016 in Asia, Finds Frost & Sullivan

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• Publié par: frost-sullivan
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Aluminium Billet Production set to climb at an

annual compound annual growth rate of 4.4 per

cent from 2010 to 2016 in Asia, Finds Frost &

Sullivan

PR Newswire

SINGAPORE, June 27, 2012

- The Domestic Need was Driven by the Demand from Major Extrusion

Companies that Consumed 865,356 MT of Aluminium Billet

SINGAPORE

,

June 27, 2012

/PRNewswire/ -- The boom in the construction sector

is rippling into the aluminium extrudes market for various applications, giving a

huge boost to the aluminium billet market. The growing automotive and

industrial sectors in

Malaysia

,

Taiwan

,

Thailand

and

Vietnam

have expanded the

market for aluminium profiles and this superior demand has, in turn, enhanced

the production capacities of existing extrusion companies.

New analysis from Frost & Sullivan (http://www.buildingtechnologies.frost.com),

Strategic Assessment of Aluminium Billets Market in Selected Far

East Countries

, finds that the current market volume for aluminium billets is

960,545 MT. It is expected to grow to 1,135,656 MT at a compound annual

growth rate of 4.4 per cent from 2010 to 2016 in the selected countries of

Indonesia

,

Taiwan

,

Thailand

and

Malaysia

.

"Regional extruders import aluminium billets from

China

,

India

and the

Middle

East

, indicating an eager end-user market for billet suppliers," says Frost &

Sullivan Senior Research Analyst Chandrakumar BJG. "The absence of primary

aluminium smelters and secondary billet producers' minimal production

volumes makes the market an attractive destination for exporters."

The end product (extruded profiles) is also exported to various regions such as

Asia

, a few EU-27 countries and the

Middle East

.

With some ambitious plans for setting up smelter plants in the selected Far East

countries falling through due to various environmental & power supply issues,

there are abundant opportunities for Gulf Cooperation Council (GCC) smelters

and billet suppliers from the Indian subcontinent to export to this region.

Suppliers will be especially pleased to note that billet's demand-supply gap in

select Far East countries is approximately 260,000 MT.

Regional ministries are urging the development of downstream industries as a

value addition to the economy. This is a smart move considering the billet

imports to these countries will be hindered by duties, which will have a direct

bearing on the pricing – a key purchase factor among aluminium extruders.

Major extruders have in-house billet casting facility which can be expanded to

sell billets to local extruders that import billets. Secondary billet producers

(through scrap / ingot remelting route) will definitely have a tighter control on

their production costs, despite their production volumes being minimal.

"Most extruders have extrusion press capacity designed for 4", 5" and 8"

billets," notes Chandrakumar BJG. "This allows the extruders to focus on

sourcing billets on cut-to-length basis and applying aluminium alloys in building

and construction, consumer durables and simple automotive profiles."