South Korea's Aluminum Market Will Show A Downward Trend In 2019

- Jan 18, 2019-

Affected by the global economic downturn and Sino-US trade friction, the Korea Nonferrous Metals Association predicts that the demand for aluminum ingots will decline in 2019, especially in the automotive wheel and precision machinery industries, demand will also decline significantly. In terms of finished products, the Korean aluminum sheet market has experienced a sharp upswing since the second half of 2018, and it is expected that it will be difficult to get rid of the sluggish situation by 2019. Although the demand for aluminum alloy cans has increased in countries such as Vietnam and China, the aluminum market is still unable to escape the downward trend due to the downturn in the Korean domestic market.

According to the report on the "Building Industry Climate Outlook of 2019" recently released by the Korean Construction Policy Research, it is estimated that the total construction and construction orders for 2019 will be 137 trillion won, a decrease of 7.9% from the previous year. Despite the slight increase in the construction of public housing projects, due to tightening of real estate regulations, private residential projects will be significantly reduced, directly causing the market to shrink. Considering the downturn in the Korean economy and the coldening of the real estate and infrastructure markets, the overseas demand for wheels and PV modules is decreasing. It is expected that sales of aluminum extrusions will decline in 2019.