aluminium ingot is a product in the form of a block that can be used as a raw material for manufacturing aluminium alloy products. It is made from alumina, which is produced through a series of chemical reactions. Aluminum ingots can also be used for re-melting to produce different types of aluminum products.
The global aluminium ingot market has been segmented on the basis of end-user industry and geography. The end-user industries include automotive, aerospace, building and construction, and electrical and electronics. The geographical segments include North America, Europe, Asia Pacific, Latin America and Middle East and Africa (MEA). The demand for aluminium ingots is expected to increase significantly over the forecast period. This is due to the increasing industrialization in emerging economies such as China and India.
During the first quarter of 2023, aluminium ingot prices showcased stagnant behavior in the Asian market. Initially, the market was characterized by plentiful inventory levels and weak demand from the downstream automotive sector amidst Chinese New Year Holidays. Furthermore, the cost support provided by low alumina prices and declining thermal coal costs continued to diminish, while operating rates of domestic aluminum processing companies decreased.
In addition, weak purchasing inquiries and customer resistance to high prices slowed new orders. These factors compelled the market participants to drop their quotation inquiries for aluminium ingots. Moreover, rising production costs induced smelter shutdowns in European regions, leading to a decrease in the market premiums for this product.