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Steady Growth Anticipated for Aluminium
Forecasts for 2016 and 2017 show steady growth in both production and demand across the aluminium value chain in Europe. Commented European Aluminium's director general Gerd Gotz Clearly aluminium is the preferre material for applications with strategic value for a sustainable economy, such as transport, packaging and buildings'.
Primary aluminium production has rallied in Europe. European Aluminium is forecasting positive growth rates of 1.1.% for 2016 and 1.3% for 2017 despite the global challange of significant overcapcity in countries such as China.
Furthermore, the recycling sector is continuing to flourish. Total recycling production in Europe has grown by around 5% per annum for several years. However, access to secondary raw material is still claimed to be an issue: in 2015, around 860,000 tonnes of alumium scrap was exported from the EU to third countires (mainly in Asia) it is pointed out.
These growth rates reflect a need for a lightweight and durable material such as aluminium, said Gotz. This need is particulary visible in transport, where aluminium demand will increase by 6% in 2016 for the second year in a row. Low carbon mobility is absolutely essential to Europe's strategy for a sustainable economy and aluminium is part of the solution.
Among the significant challanges facing the sector, he pointed to Chinese overproduction exerting ' downward pressure on prices and putting the value chain at risk.
By: Recycling International News (www.recyclinginternational.com)