Bauxite, Alumina to soar on automobile, construction sector growth

SAN JOSE, CA (Scrap Monster): The global market for Bauxite is forecast to reach 191.7 million metric tons, while global Alumina market would reach 70.3 million metric tons by the year 2015. Key factors driving market growth include recovery in the automobile and construction sectors, and increased demand from developing markets, including Asia-Pacific, Latin America, and Middle East. Further, high performance materials would influence the demand for both bauxite and alumina in future, according to GIA’s comprehensive global report on Bauxite and Alumina markets.

Worldwide economic recession adversely impacted and derailed the momentum of bauxite and alumina market. Developed regions such as the US, Canada and Japan observed a fall in demand for alumina during 2008-2009 due to the close down of various aluminum smelters, and reduced output. Prices of the minerals also remained relatively flat during this period.

The global credit crisis led to a downfall in automobile manufacturing and home construction activity. This had a direct negative impact on the bauxite and alumina industry. The use of aluminum for various infrastructure projects in developing regions was dented and the refinery and mine expansion projects in various parts of the world were halted due to the financial crisis. The market is however, expected to recover by 2011 and sustain growth in ensuing years.

Asia-Pacific represents the largest region for both bauxite and alumina worldwide, as stated by the new market research report on Bauxite and Alumina. Latin America represents the other major market for bauxite and alumina. Growth-wise, Asia-Pacific is projected to be the fastest growing regional market for bauxite and alumina, with a CAGR of about 3.8% over the analysis period.

Rapid increase in population and steady economic growth are key factors driving growth in the automotive and construction markets in Asia-Pacific, creating robust demand for bauxite and alumina. In terms of products, Metallurgical bauxite represents the major segment, while Non-Metallurgical Alumina represents the fastest growing product segment in the global alumina market.

Refractories and abrasives represent the major markets for non-metallurgical bauxite and alumina. Other applications of non-metallurgical grade of bauxite and alumina include aluminous cements, chemicals and proppants. Though there has been a decline in demand for refractories over the years, the application of alumina in end-use continues to remain strong owing to its better performance.

The same is the case in the application of both alumina and bauxite in abrasives. High performance materials would influence the demand for both bauxite and alumina in future. The application of alumina trihydrate in flame-retardants and calcined alumina in electronic ceramics and bioceramics is expected to grow significantly in the coming years.

Major players profiled in the report include Alumina Limited, Alcoa Inc., Aluminum Corporation of China Limited, Alumar, BHP Billiton Group, CVG Bauxilum, Glencore International AG, Century Aluminum Co., Gencor, Hindalco Industries Ltd., National Aluminum Company Ltd., Norsk Hydro ASA, Rio Tinto Alcan Inc., United Company RUSAL, and Vale S.A.

The research report titled “Bauxite and Alumina: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of the bauxite and alumina markets, impact of recession on the markets, key growth drivers, production scenario, competitive climate, product overview, end-use analysis, recent industry activity, and profiles of major/niche global as well as regional market participants.

The report provides annual sales estimates and projections for Bauxite and Alumina markets for the years 2007 through 2015 for the following geographic markets - US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Latin America and Rest of World. Key segments and sub-segments analyzed include Bauxite (Metallurgical Bauxite and Non-Metallurgical Bauxite) and Alumina (Metallurgical Alumina and Non-Metallurgical Alumina). Also, a six-year (2001-2006) historic analysis is provided for additional perspective.

(Vocus/PRWEB)