Abdulrahman Ahmed Al Shaibi, Qatalum Chairman, addressing the Arab International Aluminium Conference in Doha yesterday. (Abdul Basit)
BY MOHAMMAD SHOEB
DOHA: Despite economic downturn in major aluminium consuming countries the production of the metal will continue to grow at a rate of eight to 10 percent, Chairman of the Qatar Aluminum Company (Qatalum) said yesterday.
“We believe that aluminium will be the best alternative metal that would find its use in many more industries globally. And keeping in view the trends of aluminium production that we have seen between 2010 and 2011, which was between 8 and 10 percent, we expect that the same trend will continue” Abdulrahman Ahmed Al Shaibi told The Peninsula on the sidelines of an ongoing Arab Aluminum Conference, ARABAL 2012.
Asked about the source industry of demand, he said: “This is a very complex question as we see depression in most of the consuming nations but we still expect that aluminium will affect many industries around the globe. If there is any growth opportunity it will be for the aluminium industry”, he added.
Notably, since the beginning of the economic crisis the primary production of aluminium in Europe has decreased by about 25 percent due to low demand and higher energy prices pushing many European smelters to shutdown.
However, experts say the demand for the light and strong metal will witness growth in 2013, and automotive and packaging industries will be the big drivers for this growth.
ARABAL 2012, which formally opened yesterday is discussing regional issues, power generation and technology. After a pre-conference day which included a workshop on the London Metal Exchange, the morning began with opening addresses to the plenary session by Mohammad Ali Al Naqi, ARABAL Chairman; Minister of Energy and Industry H E Dr Mohammed bin Saleh Al Sada, – presented on his behalf by Al Shaibi – who also spoke as Qatalum Chairman, and Svein Richard, Hydro Aluminium President and CEO.
“We do not expect low prices to last; unlike many other metals, growth in aluminum demand is positive and we expect it to continue”. Al Shaibi expects prices to follow bullish forecasts in demand.
Dr Al Sada, through Al Shaibi, praised ARABAL as an “extraordinary opportunity for gauging the pulse of the industry and its developments across the globe”. Worldwide, he argued, aluminium industry is in a state of restructuring. Economic downslide in Europe coupled with escalating power tariffs, lack of local resources, taxation and tightening of ecological regulations have already resulted in the shutdown number of European aluminium production facilities.
“We are seeing a spate of evolution and consolidation within the industry. The focus of the aluminium sector is steadily shifting, often away from those who were considered the traditional leaders. Middle-Eastern manufacturers are now increasingly emerging as serious contenders in the global aluminum market”.
Svein Richard of Hydro Aluminum – whose joint venture with Qatar Petroleum spawned Qatalum – gave a comprehensive presentation, outlining Qatalum’s strategic position in the global supply chain, and spoke of ‘infinite aluminum’ through strong increase in demand and recycling innovations.
Al Naqi, Chairman of the ARABAL Organising Committee added: “Today, as we celebrate the sixteenth version of ARABAL 2012 here, the region has seven smelters of primary aluminium with production capacity of up to 15 percent of global production along with the other supporting projects such as calcined coal and projects that depend on smelters’ products such as aluminium extrusion, cables and car wheels factories which supply global automotive companies.
The Peninsula
