The aluminum industry has seen its fair share of ups and downs in 2015, but one recently released report could shed an optimistic light for the metal as aluminum extrusions are expected to grow significantly over the next four to five years.
The Global Aluminum Extrusion Market report reveals an increased focus on green initiatives is promoting substantial growth with lightweight, fuel-efficient aluminum extrusions.
They are 100% recyclable and emit no noteworthy hazardous gasses during the processing period. The report, from RnRMarketResearch.com, anticipates a 7% compound annual growth rate (CAGR) for this market segment through 2019 with a prediction the mill-finished segment will reach 13 million metric tons.
One of the main industries that’s driving this growth is automotive, as extruded aluminum is replacing steel in newly manufactured cars due to its more lightweight nature, contributing to reduced fuel consumption and greenhouse gas emissions. Further adding to its green capabilities, aluminum is easily recycled. Add to that its resistance to corrosion and you have a vehicle that is not only sustainable but durable, as well.
Cadillac Joins the Aluminum Craze
One example of an aluminum-fitted vehicle is the new Cadillac CT6, the first of its kind from General Motors (N:GM). The company announced this week that the CT6, with a skin of aluminum, will have its own dedicated factory-certified repair centers.
The Cadillac Aluminum Repair Network will put the carmaker in rare company, joining Jaguar, Land Rover, Tesla (O:TSLA), Ford (N:F) and Audi as others that have pioneered aluminum-centric cars and light trucks.
The auto industry has proven to be a positive in the volatile aluminum market of 2015. Working against stabilized prices is the recently announced curtailment of domestic production and the decrease in demand from top-consumer China.
How will aluminum and base metals fare for the remainder of 2015 and into 2016? You can find a more in-depth aluminum price forecast and outlook in our brand new Monthly Metal Buying Outlook report.
by Kyle Fitzsimmons