https://www.miningweekly.com

BMI forecasts bright spots in global aluminium industry

BMI forecasts bright spots in global aluminium industry

Photo by Reuters

7th November 2017

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

     

Font size: - +

JOHANNESBURG (miningweekly.com) – Global aluminium producers are likely to experience solid financial recoveries in the year ahead, following years of financial austerity, as prices remain elevated, global research firm BMI said on Tuesday.

This would result in targeted acquisitions of specific, value-added aluminium producers and a modest uptick in spending, the firm added.

BMI noted, however, that owing to a government-led push for consolidation in China and overleveraged Western firms looking to offload assets, the rising value and quantity of international aluminium merger and acquisition (M&A) activity will face regulatory headwinds.

Deals are set to increasingly run into regulatory setbacks, as the Chinese government looks to contain rising debt in the economy and the US government prioritises domestic production over free trade.

“While we expect aluminium prices to stabilise over the coming years and [although] prices experienced a solid rally at the beginning of 2017, producers will remain committed to lowering operating costs to withstand further volatility,” BMI said.

BMI expects aluminium producers will also increasingly move up the value-chain by venturing into the downstream business, where booming demand is bolstering profitability.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Actom image
Actom

Your one-stop global energy-solution partner

VISIT SHOWROOM 
John Thompson
John Thompson

John Thompson, the leader in energy and environmental solutions through value engineering and innovation, provides the following: design, engineer,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (12/04/2024)
12th April 2024 By: Martin Creamer

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.087 0.122s - 92pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: