News Analysis: The “Law of Supply and Demand” [LSD] remains unassailable even regarding Non-Ferrous Aluminum. The Bauxite Mining-Aluminum Smelting capacities of countries has far exceeded demand for the Metal. Since the ‘Supply’ Portion of ‘LSD’ has not been effectively curtailed, logic would dictate the ‘Demand’ Side be addressed.
The light weight of Aluminum, in general, and more specifically the ‘Hybrid’ Aluminum-Lithium [which is even lighter] have been making steady in-roads in aircraft fabrication. As Metallurgists invent even lighter Aluminum Alloys the products should increase in Aircraft fabrication.
Ship Construction is another important market on the “Demand Side’ of Aluminum. Primarily “Plate Stock” in designation [rather than typical ‘Sheet Stock’ for aircraft’ fabrication] much greater tonnage can be ‘digested’ through its use in this industry. Since Saline-Induced Corrosion is substantially mitigated by using Non-Ferrous Aluminum, its acceptability should be enhanced.
Additionally, its ease of being machined and/or formed may reduce ‘Touch Labor” as compared to Steel.
Demand for Aluminum is a viable proposition for the Automobile Industry. Sheet stock is lighter in weight than steel [which has been the mainstay of automobile fabrication]. By merely adding or substituting totally, body components with Aluminum, better fuel saving is realized by drivers. Great tonnage of current Aluminum Stockpiles could readily be absorbed by this Industry.
Railroad “Box-Cars” made from Aluminum would consume vast amounts of the metal. The cars, then as-made, would be lighter and allow a Locomotive to pull more of them than heavier Steel cars.
If the Government and Aluminum Supply Holders emphasize these other Demand uses, “Equilibrium” can be achieved. These “Demand” Industries are the largest potential consumers of the Metal. To resolve the current “Supply” Problem quickly, they should not be ignored.
Reference: http://www.bjreview.com.cn/business/txt/2013-11/11/content_577151.htm