Without including China, Asia accounts for almost one fourth of global aluminium consumption. Key markets are Japan, South Korea and the countries of South-East Asia. The most prospective market in the region is India.
The new Japanese government has released what is known as “Abenomics” which is a massive stimulus program. $1.4 trillion is being released into the economy via bond purchases of $70 billion each month.
The government will also spend over $100 billion to renovate infrastructure much of which was built over fifty years ago. The objective is to stimulate the economy which has not grown since 1990.
Business sentiment in Japan is strong and RUSAL sees demand for aluminium improving.
South Korea is today one of the key aluminium markets in Asia with consumption of 21,5 kg per capita compared to 15+kg per capita for developed countries.
It is expected that the industrial production in South Korea will grow by 5.9% per year until 2025, driving a growth of aluminium consumption in the country.
India is one of the fastest growing aluminium markets globally due to a massive urbanization and industrial development that fuel the country’s economy growth.
Currently, aluminium per capita consumption in India is estimated at 2.5 kg only.
|It is anticipated that by 2050, 55% of the Indian population will live in cities and the average income in the country will grow fourfold. Rapid urbanization and the growth of middle class in India require substantial investments in infrastructure and transport development.|
According to forecasts aluminium consumption in India expects to grow by 4.1% in 2014 and by 5.6% in 2015.
McKinsey Global Institute