Market concerns on possible drop in aluminum demand in European automotive industry
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Update time : 2021-06-07 17:54:34
The aluminum market has begun to recover from the lockdown measures since the second half of last year, mainly driven by strong demand from automotive and original equipment manufacturer (OEM) sectors, which greatly boosted the European aluminum industries.
However, market participants worry that automotive sales are still lower than the pre-epidemic level (2019), which will lead to a decline in aluminum demand. Moreover, the aluminum premiums were expected to decline later this year due to low demand.
According to analysts, the long-term demand may be difficult to maintain high if the automobile sales don’t rise sharply. It was expected that the overall aluminum market won’t recover to the pre-epidemic levels until the second half of 2022.
