Global Alumina Market to Soar to US$102.5 Billion by 2030, Backed by Strong Demand for Aluminum Products

submitted 1 year ago by swatitiwari to business

The global alumina market is poised to witness significant expansion in the coming years, burgeoning from a valuation of US$69.8 billion in 2022 to an impressive US$102.5 billion by 2030, according to recent market analyses. This translates to an estimated CAGR of 3.7% from 2023 to 2030, promising a nearly 1.5x growth in revenue.

Read More: https://www.fairfieldmarketresearch.com/report/alumina-market

Key Insights from the Report

Market Resilience: Despite disruptions due to the COVID-19 pandemic and geopolitical tensions, the market showcased considerable resilience. The demand for smelter grade alumina (SGA) surged, accounting for over 90% of the total alumina demand in 2022, a trend predicted to continue with a CAGR of 2.9% between 2023 and 2030.

Dominance of China: China emerged as a significant player in the alumina production landscape, single-handedly contributing to over 50% of the global alumina production in 2022, which totaled over 140 million tons.

Impacts of Russia-Ukraine Conflict: The ongoing Russia-Ukraine crisis has substantially influenced alumina pricing and production, especially in Europe where Russia constituted over 40% of the alumina output in 2022. The turmoil has fostered unpredictable market dynamics with fluctuating alumina prices.

Looking Ahead: Opportunities and Challenges

Opportunities

Investment in the Aluminum Value Chain: New investment avenues are opening up in India and Southeast Asia. Notable is the Adani Group's US$5 billion investment in a new alumina refinery in India, and Shandong Nanshan's plan for a substantial US$6 billion expansion in Indonesia. Sustainable Advancements: Companies are increasingly leaning towards sustainable technologies, striving to reduce GHG emissions and promote a circular economy. Initiatives include the development of state-of-the-art alumina refining technologies to decrease energy emissions and bauxite residue. Challenges

Price Volatility: The market faces persistent challenges with fluctuating alumina prices, a situation exacerbated by the COVID-19 pandemic and high energy costs. Despite a recovery in 2021, the prices remained high, posing a significant challenge for industry stakeholders. Geopolitical Unrest: The Russia-Ukraine geopolitical conflict has induced considerable volatility in the alumina market, affecting the supply dynamics and escalating the alumina and aluminum prices to unprecedented levels. Conclusion

As the alumina market gears up for a period of substantial growth, stakeholders remain optimistic, banking on the rising demand for aluminum, particularly in automotive, aerospace, and packaging industries. The focus remains steadfast on sustainable advancements, seeking to pave the way for a greener and more resilient alumina industry.

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