European Aluminium Ingot Price Decline in Mid-October Amidst Weakening Demand
European Aluminium Ingot Price Decline in Mid-October Amidst Weakening Demand

European Aluminium Ingot Price Decline in Mid-October Amidst Weakening Demand

  • 18-Oct-2023 6:06 PM
  • Journalist: Peter Schmidt

In the week ending October 13, the price of Aluminium Ingot declined in the European spot market as the demand remained low from domestic downstream industries. The supply of Aluminium Ingot in domestic warehouses remains on a higher edge as local consumers decrease their purchases. The major market players anticipate the European economic situation to have a slower pace by the end of 2023. Furthermore, the demand from the downstream automotive industries also shifts southwards as the rising concern for the ejection of pollutant gas from large SUVs has kept the European Auto market at risk. Overall, the market remains stable, having a slower trade rate and leading the price to move in a downward direction.

Despite lower consumption, the European Aluminium Ingot supply is rising due to increased production rates in domestic mills. ALRO S.A., a prominent player in the European Aluminium Ingot industry, is committed to reducing its ecological impact and improving competitiveness by approving three new investment projects totaling USD 18 million. Novelis, a global leader in sustainable Aluminium solutions, has renewed its long-standing partnership with aviation giant Airbus, strengthening their collaboration spanning over three decades and supporting the Aluminium Ingot's future trades. These efforts are geared towards decarbonizing operations and aligning with the latest environmental standards. In response to declining trade activity in local and international markets, the European government is initiating new deals to revitalize the European Aluminium ingot industry. The European Union (EU) is poised to mitigate the repercussions of the US Inflation Reduction Act (IRA) while promoting green subsidies for electric vehicles. This move is expected to boost demand for Aluminium Ingots in European and global markets, driving up prices in the coming months.

Meanwhile, the demand for Aluminium Ingot from the downstream automotive industries is witnessing a drop in sales, primarily due to the rising concern about the high gas emissions rate from the increased sales of SUVs in the European market. The automotive sales also experienced a downturn due to the tight competition from overseas Chinese manufacturers. In September, SAIC Motor, the foremost vehicle manufacturer in China in terms of sales volume, achieved a remarkable milestone by selling 482,000 vehicles. This accomplishment reaffirms its position as a leader in the country's automotive industry and sets a new monthly sales record for the year. The ripple effect of these factors declined the price of Aluminium Ingot in the European spot market in mid-September.

According to ChemAnalyst, the price of Aluminium Ingot is expected to show a similar trend for a few weeks as the market seems to have a bearish sentiment. Despite that, the sales of Automobile, especially SUV, has been on a higher edge, and market participant expects it to retain its level in the forthcoming period. Moreover, the UK car industry expects that the incoming tariffs between the UK and the EU could significantly raise the price of imported electric cars by the end of 2023.

Related News

German Aluminium Ingot Market Thrives Amidst Volatility in April 2024
  • 29-Apr-2024 5:39 PM
  • Journalist: Li Hua
RHI Magnesita Announces Proposed Acquisition of Resco Group
  • 02-Apr-2024 6:43 PM
  • Journalist: Jacob Kutchner
Alcoa Set to Acquire Alumina Limited in Binding Deal
  • 12-Mar-2024 5:15 PM
  • Journalist: Jacob Kutchner
US Aluminium Ingot Price Experiences Growth Amidst Plunging Supply and Lowered Production Rate
  • 08-Feb-2024 2:21 PM
  • Journalist: Francis Stokes