The growing usage of aluminum for beer and soft drink cans in China is one of the key drivers of the continued growth in demand for light metals, according to the analyze of the experts from second-largest mining company in the world Rio Tinto. The news is more than good for the company, with more than a quarter of revenue coming from the aluminum trade.
According to the CEO of Rio Tinto Aluminium, Alf Barrios, an additional boost to business is the increased production of electric cars. “In the manufacture of packaging, especially those for soft drinks and beer in China, we see a shift from glass to aluminum”, he said.
The activities of Chinese beer companies, such as Tsingtao Brewery, are booming, with UBS and Goldman Sachs expecting brands to raise their product prices for demand. The Swiss banking group expects the annual profit growth for the sector to grow by 28% between 2018 and 2020.
Rio Tinto, in turn, predicts that demand for aluminum will grow by about 4% per year for the next five years. Alf Barrios points out that support for this will also be the production of electric cars that are used more than metal than conventional cars.
The global aluminum consumption is expected to grow by 3% and 4% in 2018 and 2019 respectively.