Reports


Global Aluminum Billets Market 2020 to 2029 By Type(Aluminum Strapping, Aluminum Strip) By Series (1000 Series, 3000 Series, 6000 Series, 8000 Series) By Applications (Transportation, Packaging, Construction, Electronics)Includes COVID-19 Business Impact

  • TBI922525
  • September 14, 2020
  • Global
  • 94 pages
  • IFF Market Research
                                              Global Aluminum Billets Market Introduction
A billet is one of the most extensively used forms of aluminum across the globe. Billets are produced either directly through continuous casting or extrusion, or indirectly through the process of hot-rolling an ingot or bloom. Foundries create various types of alloys and grades of aluminum by combining raw aluminum with other metals and/ or minerals such as copper, manganese, and others. After the materials have been combined, smelted, and impurities extracted, billets are created by placing the melted material in a pre-designated mold under high pressure. The intense pressure removes all gas and air bubbles, aligning the molecules to form a solid block of aluminum, which is high in density, devoid of any visible grains or imperfections such as scratch marks, drags, and cold shuts, among others. In-line degassing and ceramic foam filtration ensure that these billets are free from any internal defects, such as blowholes, inclusions, cracks, porosity, etc., resulting in quality. These billets can be produced out of primary aluminum, as well as secondary or aluminum remelt, and can be further processed to make wires and bar stocks and other products.

Aluminum billets are widely used in the construction industry, manufacturing of automotive parts, aerospace parts and other applications such as packaging, electrical and electronics, consumer goods, etc. Aluminum is most widely used metal in construction activities, from commercial buildings, domestic dwellings to infrastructure projects.

The main application of aluminum billets is in construction sectors for manufacturing windows, roofing, cladding, curtain walling, structural glazing, architectural hardware, shopfitting, and partitions, as well as, prefabricated buildings.

Aluminum is also used extensively in plant, ladders, and scaffolding. Aluminum is ductile in nature, owing to which it can easily be formed into a number of shapes and profiles. Moreover, aluminum wall cladding systems can help in manufacturing attractive and functional exteriors of buildings. For instance, around 40% of the UK annual production of aluminum is used in the construction industry.

In the automotive industry, aluminum billets are used to manufacture different parts such as the clutch lever, engine mounts, and roof consoles, owing to its corrosion-resistant properties, and are more durable during vehicle crashes due to their flexibility and inherent strength. Aluminum billets are also used in the manufacturing of primary propellants for solid rocket booster motors in space shuttles, owing to its high volumetric energy density. Corrosion resistance, reflectivity, and recyclability are some of the other properties offered by aluminum, making it a favorable choice for other industrial applications. Aluminum billets are generally considered as a stronger material when compared to that of casts. This is because these parts are made from a single block of material which have been machined down on computer numerical control (CNC) mills.

The global aluminum billets market is segmented on the basis of aluminum series, industry vertical, and region. Based on the aluminum series, the market is segmented into 1000 Series, 3000 Series, 6000 Series, and other series. With regards to industry verticals, the global aluminum billets market is segmented into the transportation, packaging, construction, electronics, and other industry verticals.

Among the product type segments, the 6000 series segment is expected to register a relatively higher revenue growth over the forecast period. Among the industry vertical segments, the construction segment is expected to register a relatively higher revenue over the forecast period, followed by transportation as the next contender. Among the regions, revenue from the market in Asia-Pacific is expected to register a significant revenue as compared to markets in other regions over the forecast period.

Global Aluminum Billets Market segmentation based on Aluminum Series, Industry Vertical and Region

Global Aluminum Billets Market segmentation by Aluminum Series
  • 1000 Series
  • 3000 Series
  • 6000 Series
  • Other Series
Global Aluminum Billets Market segmentation by Industry Applications
  • Transportation
  • Packaging
  • Construction
  • Electronics
  • Other Industry Applications
Based on Region
  • North America
  • Europe
  • Asia Pacific
  • South America
  • Middle East & Africa
Primary growth factors for Global Aluminum Billets Market
  • Increasing usage of aluminum in the building & construction industry has boosted the revenue growth of the aluminum billets market. This can be attributed to the increasing population, robust urbanization, rapid industrial development, and higher disposable income of individuals living in urban. Strong investments by governments in the developing countries of Asia-Pacific such as China, India, etc. towards infrastructure development is a vital factor driving the growth of the aluminum billets market.
  • The aluminum billets market is primarily driven by the rapid adoption of billets in the automotive industry and the overall transportation sector, owing to their weight-to-strength ratio, corrosion resistance, safety, and performance. Continuous advancements in the transportation industry, as well as ongoing R&D activities to develop innovative, more effective, and cheaper aluminum products are expected to foster market growth. Additionally, several manufacturers are now focusing on using aluminum in the construction of light trucks and cars by more than 40%. Aluminum engine mounts, running boards, tailgate frames, and roof consoles are corrosion-resistant and tend to be more robust in the event of a vehicular crash, owing to their flexibility and inherent strength. Moreover, studies have also confirmed that the usage of aluminum in the automobile industry significantly reduces CO2 emissions. The high adoption of aluminum billets for the production of rail and aircrafts components is expected to continue over the years. These are some of the key factors that are expected to fuel the demand for aluminum billets over the forecasted period.
  • In 2018, the new-energy passenger vehicle (NEV) production increased significantly up to 75%, mainly due to strong demand for BEVs. Owing to this, China’s consumption of aluminum for NEVs has jumped to 96%, from 75 KMT in 2017 to 146 KMT in 2018. This is attributed to government investments for fueling the production of NEVs and creating infrastructure to support the NEV policies.
  • An ever-growing working population and adoption of a sedimentary lifestyle have fueled the growth of the commercial food service industry which includes, takeaway food, ready-to-eat food, as well as food from Quick Service Restaurants (QSRs). The increasing number of dual-income households and changing patterns in the food consumption of consumers has increased demand for aluminum packaging. Aluminum foil used to provide protection against light, moisture, and bacteria, etc. and to preserve the content. Thus, the growing demand for aluminum packaging is expected to boost the revenue growth of the aluminum billets market over the forecast period. Coffee in aluminum capsules was first conceived by a Nestle employee named Eric Favre. Coffee in traditional/conventional bags tends to lose its aroma after the bag has been opened, single-serving coffee capsules are only opened just before use, which signifies that this will not be a problem.
  • Manufactured medicines must be protected from different elements over an extended period of time, as exposure can alter their properties. Aluminum foil is used for the packaging of all forms of medication, such as pills, lotions, liquids, capsules, creams, and powder medications. Aluminum offers protection against light, moisture, oxygen, and other gases, as well as against microorganisms and bacteria.
  • The wires are composed of aluminum which exhibits excellent corrosive protection properties and has found a broad array of applications in products such as, transformers, building wires, as well as various electrical appliances. Moreover, the high adoption of aluminum in the production of electrical and electronic components and mainly its use for manufacturing machinery is expected to foster industry growth in the near future. In addition, R&D activities being undertaken by manufacturers to develop more effective end-products are expected to boost the revenue growth of this market over the forecast period.
  Primary Restraints for Global Aluminum Billets Market
  • Fluctuating raw material costs and availability of substitutes such as alumina, and glass. This is one of primary restraining factors that is expected to affect the revenue growth of the global aluminum billets market.
  • The coronavirus (COVID-19) pandemic has adversely affected industries all over the world, and aluminum billets market is no exception. Citing an exponential rise in confirmed cases of COVID-19, respective governments in several countries have enacted nationwide lockdowns and social distancing regulations to break the trajectory of the virus. As a consequence, market players are shutting down production/ manufacturing operations, either totally or partially, due to the scarcity of raw materials and workforce labor.
  • Moreover, there has been a strong inventory build-up which has resulted in falling prices for aluminum billets, due to a decrease in demand from key consuming sectors such as transportation and construction. Aluminum price fell by 21.49% from US$ 1,807/MT in January 2020 to US$ 1,421.5/MT in April 2020. China – a key exporter of aluminum billets has in fact become a major importer first time in the last 11 years and is taking advantage of low-priced aluminum products from overseas markets instead of the domestic market to gain from the declining prices. The COVID-19 has had a grave impact on aluminum billets producers, as well as the end-use industries of the products. This impact is likely to continue until the end of 2020, extending till the first quarter of 2021.
  • Norsk Hydro ASA - an aluminum manufacturer has reported that the global primary aluminum consumption in Q2 2020 declined by 9% due to the coronavirus pandemic. The world consumption stood at 15.482 million tonnes in Q2 2020 as compared to 17.01 million tonnes in Q2 2019.
  • Aluminum manufacturing companies are looking at piling inventory stocks of the metal as Covid-19 pandemic has squeezed domestic consumption and has also lead to demand contraction among importing countries.
  • Furthermore, major automotive companies have cut down their production and many construction projects are on hold due to the outbreak.
  • London Metal Exchange warehouses have seen a 26.9% increase in inventories from 0.96 MT (million tonnes) on March to 1.22 MT on April.
Business Opportunities in Global Aluminum Billets Market
  • The rapid adoption of renewable sources of energy has encouraged government and environment associations of several countries to formulate policies for the adoption of renewable energy. Most of the manufactures and integrators are using aluminum solutions for solar energy collectors by offering highly reflective and energy-efficient aluminum sheets for optimizing solar-selective absorbing processes. This is expected to create lucrative opportunities for aluminum billets manufacturers in the coming years.
  • Increasing the requirement for electricity and strong distribution networks in emerging economies such as India, and Brazil, among others, is likely to drive the demand for electric wiring, which in turn, is expected to fuel the revenue growth of the target market. The rise in the usage of aluminum fasteners over the last few years has led to an increase in the demand for aluminum alloy wires. Several key industry players are focusing on increasing R&D activities towards the development of such alloy wires.
  • Furukawa Electric has developed a new alloy which consists of aluminum along with copper, iron, and magnesium. It exhibits properties such as high conductivity, flexibility, and increased mechanical strength, which is essential for wire harnesses in the automotive industry.
Business trends in Global Aluminum Billets Market
  • Increasing adoption of aluminum billets for decorative detailing and art decor. This is attributed to its sustainable, reusability, and recyclable nature.
  • Aluminum has now become a favorable material for builders who are looking to implement new technologies in the buildings and construction sector. Aluminum billets have vast and various applications in the construction industry. Aluminum is used for light management due to its reflective properties that help to lessen energy consumption for lighting and heating. A major application of aluminum in emerging technology is the aluminum formwork system. This is a modernized construction system which helps in forming a cast with the help of panels for a concrete structure of the building. The metal is used in place of traditional/conventional shuttering during making the framework of the building. These formwork systems can be used in both high as well as low constructions, which will fuel the growth of the target market during the forecast period.
  • Increasing focus on recycling of aluminum products, such as aluminum beverage cans to form aluminum billets by prominent players to produce innovative products, to enhance product offerings, helps to expand the customer base, and strengthen market presence and footprint.
  • Alcoa Recycling Company, a subsidiary of Alcoa Corporation, has aluminum manufacturing facilities including a recycling plant. The company has established can the reclamation facility which recycles aluminum beverage cans in the form of aluminum billets. Their primary products under the SUSTANA brand including ECODURA and ECOLUM – that are billets made from recycled aluminum have been gaining strong popularity amongst various industry verticals for the past few years.
The following manufacturers are covered in the Global Aluminum Billets Market Research Report
  • Rio Tinto
  • Xinfa Group Co., Ltd.
  • Aluminum Corp. of China Ltd. (CHALCO) (Aluminum Corp. of China Ltd. is engaged in the production of alumina, primary aluminum, and aluminum fabrication products in China. It operates through the following business segments: Alumina, Primary Aluminum, Trading, Energy, and Corporate and Other. The Alumina segment includes the mining and purchasing of bauxite and other raw materials, and production and sale of alumina as well as alumina-related products, such as alumina hydrate, alumina-based chemical products, and gallium. The Primary Aluminum segment includes the procurement of alumina, other raw materials, supplemental materials and electrical power, the production and sale of primary aluminum, and aluminum-related products, such as carbon products, aluminum alloy products, and other electrolytic aluminum products. The Trading segment mainly engages in the trading of alumina, primary aluminum, other non-ferrous metal products, and crude fuels such as coal products, as well as supplemental materials to internal manufacturing plants and external customers. )
  • Norsk Hydro ASA
  • Hindalco Industries Ltd (Hindalco Industries Limited an Indian aluminum and copper manufacturing company, is a subsidiary of the Aditya Birla Group. Its headquarters are at Mumbai, Maharashtra, India. It is the Flagship company in the metals business. The company has annual sales of US$15 billion and employs around 20,000 people. It is listed in Forbes Global 2000 at 895th rank. Its market capitalization by the end of May 2013 was US$3.4 billion.[6] Hindalco is one of the world's largest aluminum rolling companies and one of the biggest producers of primary aluminum in Asia.)
  • Alcoa Corp
  • United Co. RUSAL Plc
  • Arconic Corp.
  • Emirates Global Aluminum
  • Aluminum Bahrain BSC (Aluminum Bahrain B.S.C. (Alba), the world's largest aluminum smelter ex-China, is known for its technological strength and innovative policies. Alba enforces strict environmental guidelines, maintains a high track record for safety, and is widely regarded as one of the top performers on a global scale.The company headquarters is based in Bahrain and 84% of its total workforce are Bahraini nationals. The company produces a range of aluminum products to include T-Ingots, 10Kg/22.5Kg Standard Ingots, Properzi Ingots, Rolling Slabs, Extrusion Billets, Sows, and Liquid metal. About half of Alba's aluminum is sold to Bahrain's downstream industry while the rest is exported to countries within the GCC, the Middle East, Europe, Americas, Far-East, and South Asia. In 2019, the company set an all-time production record in its history with 1,365,005 metric tonnes.)
  • Vista Metals Corp
  • Matalco Inc
  • Guangxi Liuzhou Yinhai Aluminum Co., Ltd
Global Aluminum Billets Market Revenue Comparison by Aluminum Series (2014 Vs 2020)(Million)
Aluminum Series 2014 2020
1000 Series 1,429.00 1,671.00
3000 Series 3,681.50 4,883.10
6000 Series 4,169.60 5,629.00
Other Series 2,586.10 3,119.70
Grand Total 11,866.20 15,302.80
Global Aluminum Billets Market Revenue Comparison by Industry Vertical (2014 Vs 2020)(Million)
Industry Vertical 2014 2020
Transportation 2,369.80 3,260.10
Packaging 652.7 752.1
Construction 6,152.20 7,958.60
Electricals 1,225.10 1,423.70
Other Industry Verticals 1,466.40 1,908.30
Grand Total 11,866.20 15,302.80

Table of Contents

Executive Summary
1 Aluminum Billets Market Overview
    1.1 Product Overview and Scope of Aluminum Billets
    1.2 Aluminum Billets Segment by Type
        1.2.1 Global Aluminum Billets Production Growth Rate Comparison by Type (2014-2025)
        1.2.2 Aluminum Strapping
        1.2.3 Aluminum Strip
    1.3 Aluminum Billets Segment by Application
        1.3.1 Aluminum Billets Consumption Comparison by Application (2014-2025)
        1.3.2 Transportation Industry
        1.3.3 Packaging Industry
        1.3.4 Construction Industry
        1.3.5 Electronics Industry
        1.3.6 Others
    1.3 Global Aluminum Billets Market by Region
        1.3.1 Global Aluminum Billets Market Size Region
        1.3.2 North America Status and Prospect (2014-2025)
        1.3.3 Europe Status and Prospect (2014-2025)
        1.3.4 China Status and Prospect (2014-2025)
        1.3.5 Japan Status and Prospect (2014-2025)
        1.3.6 Southeast Asia Status and Prospect (2014-2025)
        1.3.7 India Status and Prospect (2014-2025)
    1.4 Global Aluminum Billets Market Size
        1.4.1 Global Aluminum Billets Revenue (2014-2025)
        1.4.2 Global Aluminum Billets Production (2014-2025)

2 Global Aluminum Billets Market Competition by Manufacturers
    2.1 Global Aluminum Billets Production Market Share by Manufacturers (2014-2019)
    2.2 Global Aluminum Billets Revenue Share by Manufacturers (2014-2019)
    2.3 Global Aluminum Billets Average Price by Manufacturers (2014-2019)
    2.4 Manufacturers Aluminum Billets Production Sites, Area Served, Product Types
    2.5 Aluminum Billets Market Competitive Situation and Trends
        2.5.1 Aluminum Billets Market Concentration Rate
        2.5.2 Aluminum Billets Market Share of Top 3 and Top 5 Manufacturers
        2.5.3 Mergers & Acquisitions, Expansion

3 Global Aluminum Billets Production Market Share by Regions
    3.1 Global Aluminum Billets Production Market Share by Regions
    3.2 Global Aluminum Billets Revenue Market Share by Regions (2014-2019)
    3.3 Global Aluminum Billets Production, Revenue, Price and Gross Margin (2014-2019)
    3.4 North America Aluminum Billets Production
     ...
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