US mines and ore companies have been investing billions of dollars in the production of new types of aluminum ore and copper.
Now the US Geological Survey says it has found evidence of significant global demand for aluminum in the last three years.
What does that mean for the world?
The USGS report states that since 2007, demand for “new, highly-refined, or high-grade aluminum has risen by 50 percent in the US and more than doubled in China.”
Aluminum demand in China is expected to grow by 30 percent this year.
The report says demand for these new “advanced, highly refined aluminum products is expected by the end of 2021 to reach $8.2 trillion.
That is more than three times the annual value of all U.S. metals exports in 2020.”
The increase in demand for new, highly refined, and high-strength aluminum products reflects the continued decline in production volumes, particularly in China, which has seen declining production volumes over the last year.
These new aluminum products are used in industrial processes, such as aluminum smelting, in automotive and aerospace, as well as in residential and commercial products,” the report says.
It notes that demand for advanced aluminum products in China has also been increasing for years, as the country’s economy has grown.
The report says that the increase in aluminum demand “is driven by both domestic and global demand.”
The US Geological survey said that aluminum demand is expected “to increase by 30% in 2021, to reach a total of $9.4 trillion.”
According to the report, aluminum demand in the United States grew in 2020, while demand for all other metals decreased.
Demand for aluminum will also increase in India, China, the European Union, and elsewhere,” the survey says. “
Demand for aluminum is expected in 2021 to grow to a total value of $8 trillion, a 15 percent increase over 2021.
Demand for aluminum will also increase in India, China, the European Union, and elsewhere,” the survey says.
According to research firm IHS Markit, aluminum production is expected increase by 10.4 percent in 2021.
Aluminum demand for industrial applications increased in the fourth quarter of 2020, and demand for commercial applications is expected continue to rise.
Aluminum production in the European industrial market rose by 2.5 percent in 2020 and 3.7 percent in 2022, the report said.