RATIONAL

The Aluminium industry is a strategic sector for the Kingdom to grow and further develop, as it serves as an enabler to other sectors (e.g., construction,automotive, renewables, aerospace). Today, KSA’s Aluminium capabilities focus on four product categories: can stock, extrusions, conductor wire, and automotive sheet. However, products like foil, plate, and castings are imported, and some current capacities are projected to be insufficient to cater to increasing domestic demand.

Value Proposition

• In 2019, the global Aluminium consumption reached 66 mn metric tons and is projected to reach 88 mn metric tons by 2030, representing a CAGR of 2.4%.

• KSA market is the largest in GCC, and KSA demand projected to increase from 482 kt in 2019 to 1,129 Metric kiloton in 2030, mainly driven by the ramp up in other high-value-add sectors.

• Integrated value chain from Maaden Al Baitha bauxite mine alumina refinery and finally to downstream activities.

• Vast natural gas availability and low electricity prices.

• High Domestic primary aluminium and bauxite production.

• To cater the strong demand, production has increased considerably, with China supplying more than 55% of primary aluminium.

• Global Primary Aluminium consumption projected to increase by ~2.5% over next decade with Middle East region growing the fastest at ~5%.

• Global consumption is heavily dominated by the construction and transport sectors which account for ~50% combined .

• China is the biggest exporter of aluminium and aluminium products while the USA and Germany are the largest importers.

• Globally, construction and transport account for ~50% of the aluminium consumption.

• Share of transport is expected to increase in the future as use of aluminium in automotive is continuously increasing.

• Demand in China and North America is expected to be driven by the automotive industry as manufacturers turn to lighter material.

• Demand in Europe is expected to be driven by the recovery in packaging.

• USA is the biggest importer of aluminium products, majority coming from Canada, followed by China, UAE and Mexico.

• When combined, European Union members imported USD 25.3 Bn in 2019, excluding intra-regional trade.

• China, accounting for more than half of global primary aluminium production, is the largest exporter of aluminium products.

• The top 3 exporters (China, Germany and USA) represented 31% of global exported volumes in 2019.

However, Saudi Arabia’s low electricity rates leads to an advantageous cost of production, a key benefit for domestic production.

By 2030, KSA’s proportional downstream aluminium demand will shift towards extrusions and castings to cater to the automotive, renewables, and aerospace sector.

All GCC countries operate in the midstream segment of the aluminium value chain while various downstream products are manufactured.

All GCC countries operate in the midstream segment of the aluminium value chain while various downstream products are manufactured.

Aluminium demand in KSA is expected to experience strong growth in the next decade, mainly driven by the ramp up of the automotive, renewables and aerospace sectors.

FRPs will see a strong demand from new sectors in the next decade; plates to serve the aerospace sector and sheets to serve the automotive industry.

Imports of extrusions and conductor wire decreased significantly due to lower construction activity while exports of FRPs took off as downstream capabilities increased.

Imports of extrusions and conductor wire decreased significantly due to lower construction activity while exports of FRPs took off as downstream capabilities increased.