The Value of the Aluminum industry in Russia, attained a value of USD 7,723.06 Millions in 2021
The indicator recorded a historical decline by a CAGR of 0.60% between 2018 to 2021, and is expected to grow by ...
GlobalData projects the indicator to grow at a CAGR of ...
Market analysis
The aluminum industry consists of primary aluminum (made from alumina) only, secondary aluminum (made by the recycling of scrap aluminum) is excluded.
The Russian aluminum industry saw another contraction in value terms this year, while volume recovered at a modest rate. Healthy growth is expected going forward.
The global aluminum industry saw a decline in 2020 after the COVID-19 pandemic led to plummeting prices initially. This also followed a year of stronger decline in 2019 caused by a flat year for production volume and falling prices. In the forecast period a return to growth is expected as prices have risen steadily since the initial months of the pandemic.
Global aluminum industry geography segmentation
Asia-pacific accounts for major percentage of the global aluminum industry value.
Europe, Middle East, United States are the other notable countries involved in aluminum industry.
Five Forces Analysis
The aluminum market will be analyzed taking primary aluminum producers as players. The key buyers will be taken as end-users from numerous companies (mainly automotive, construction and packaging firms) that utilize metals in the production of their goods, and producers of raw materials such as bauxite and energy providers as the key suppliers.
Buyer power
As buyers are typically large companies with more capital, there is more ability to negotiate and enter long-term contracts with players. This increases buyer power. However, this is offset by the switching costs associated with long term contracts. Buyer power is also reduced due to the large number of buyers that a player can market and sell their product to.
Supplier power
Suppliers to this industry mainly include producers of raw materials, and energy providers. To produce primary aluminum, industry players convert bauxite to alumina, which is then smelted into primary aluminum. From here aluminum products can be fabricated. Aluminum producers are largely vertically integrated and will own bauxite mines. Rio Tinto and Alcoa, for example, own seven active bauxite mines.
New entrants
The global aluminum industry is primarily characterized by the presence of large multi-national companies, which are usually highly vertically integrated, such as RUSAL, China Hongqiao, Rio Tinto Alcan, and Shandong Xinfa, benefiting from economies of scale. This raises barriers to entry, as to compete with such players a new entrant would effectively need sufficient capital to acquire mining rights, establish mines, smelters and transportation links, and negotiate a contract with energy providers.
Threat of substitutes
Properties such as lightness, strength, and the ability to withstand pressure, as well as being cost-effective make aluminum an ideal metal for several different industries. This means that a beneficial substitute is not available in many of its applications.
Degree of rivalry
Competitors in the aluminum industry are large corporations, often multi-national, and as such create a competitive environment due to their ability to exploit scale economies and access cheaper sources of funding for expansion than smaller competitors.
Key company
United Company RUSAL Plc
United Company RUSAL Plc (RUSAL) is an integrated aluminium manufacturer. It manufactures and markets aluminium sheet, ingot, wire rod, foundry aluminium alloy, aluminium billet and others. Its alumina refineries are located in Ireland, Jamaica, Ukraine, Italy, Russia, and Guinea. The company also owns and operates aluminium smelters are located in Bratsk, Krasnoyarsk, Irkutsk, Sayanogorsk, Novokuznetsk, Volgograd, Kandalaksha, Khakas, Urals and Kubal (Sweden).
Switzerland
China
Japan
Luxembourg
South Korea
Japan
United Kingdom
Australia
Japan
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