Covid-19 Impact: Aluminum Extruded Products Market
The COVID-19 pandemic has swept across all the major geographies and has impacted the global industrial production. Aluminum extruded products industry is no different with many industry events and operations facing the disruption. Many of the major end-use industries for aluminum extruded products are facing the crisis posed by this pandemic. The global metal production is witnessing drastic demand drop as the major end-users are under reeling under shutdown under the widespread lockdown. The demand from the major end users is the most significant are of assessment while computing the overall impact of Covid-19 on this global market. Global demand for the aluminum extruded products has been greatly affected by the decreasing production of electronics and electricals including modern devices and printed circuit boards (PCB). However, the industry experts are of the view that the aluminum metal, which is essentially vital in production of these small but powerful devices may actually witness both rise or fall in demand depending upon its application. For instance, the ventilators which are being used to assist Covid-19 patient with breathing. Additionally, the medical devices that are high on demand depends upon PCB’s to function. Furthermore, the supply chain of this market has faced significant impact from slowing production in automotive industry.
The aluminum extruded products are widely used in automotive, construction, transportation & logistics and electrical & electronics. With many of the construction activities under shutdown this industry is experiencing slowdown in demand to the greater extent. In major aluminum producing countries such as India, the producers are facing great challenge in terms of export. Around half of their production is exported to the developed countries. The domestic demand for the aluminum extruded products fell by around 40 basis points in first 10 months of fiscal year 2019-2020.
However, the major aluminum extruded products producers are taking some safety measures to safeguard their interest during the COVID-19 pandemic. It includes daily monitoring of demand forecasting methods on part of the manufacturers for slackening demand among downstream steel extruded product consumers. Identification of “non-essential” industries in each country in order to improve the demand forecast from major end-users.
Considering the above points, MRFR has analyzed the fall of around 150 basis points in the CAGR% of the global aluminum extruded products, wherein the pre-Covid-19 CAGR% of the market was expected to be around 3.45%.