BRAZILIAN ALUMINUM - solutions for sustainable living

BRAZILIAN ALUMINUM SOLUTIONS FOR SUSTAINABLE LIVING 10 GLOBAL ALUMINUM MARKET OUTLOOK Global aluminum market outlook Aluminum is a global commodity, which is produced at 236 plants located in 42 countries in five continents. Its price is referenced by the London Metal Exchange (LME). The worldwide production of primary aluminum in 2016 totaled 57 million tons, of which nearly 70% is found in China, Russia and Canada. Its industrialization dates from very recently in the late 19th century. Then, given its traits of production and use, it requires a sort of life-cycle perspective, in a way sustainability issues can be addressed accordingly. 1.1. Aluminum growing demand will remain high Historically, the average annual rate of growth in the world demand for primary aluminum has kept up with economic growth. Nevertheless, as from 2000, that rate has moved to 5.4% per year, considerably higher than the growth of the world economy that attained nearly 3% per year in the period. The reason for such difference stems chiefly from the unprecedented expansion of industrialization and urbanization in China. Between years 2001 and 2007, ninety (90) million people migrated from rural areas to the cities. Such move then boosted the average annual growth of the construction sector in China in 14.2% per year, while the country’s GDP grew by 9.6%. For 2025, experts have foreseen that the global demand for aluminum, which in 2016 achieved 58 million tons, will keep on growing mostly thanks to China and Asia that have sustained their strengthened presence in the overall production of aluminum. 1.2. Larger demand in the transport, civil construction and energy markets The growing use of aluminum in the transport sector is due to the greater presence of the metal in the manufacture of motor vehicles, trucks, buses, vessels, subways and trains. Its properties of lightness and resistance boost safety while helping deplete greenhouse gas emissions. A recent forecast made by Ducker Worldwide , a consulting firm, for the automotive sector has shown up to a 30% rise in aluminum consumption over the next 10 years, mostly in countries provided with emission limit regulations and sustainable mobility programs. In the civil construction segment, expectations are fairly favorable. The diversity of aluminum products such as frames, lining panels, facades, roof structures and side locks, partitions, ceilings, boxes, forms, scaffolding and braces, coupled with the concern with sustainable construction, allows a positive projection of thriving demand for that segment. 1