The analysts forecast the global aluminum welding wires market to grow at a CAGR of 6.25% during the period 2017-2021.
The report covers the present scenario and the growth prospects of the global aluminum welding wires market for 2017-2021. To calculate the market size, the report presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources.
According to the report, one driver in market is increasing demand for lightweight vehicles. The global demand for aluminum has been One trend in market is inclusion of Ti and Sr in ER4043 aluminum alloy welding wire. The inclusion of Ti and Sr in ER4043 aluminum welding wire pertaining to its microstructure has proven to change the eutectic silicon morphology and has led to the development of ER4043 aluminum rods properties. The proportional addition of Sr refines the process, thereby resulting in enhanced properties for the aluminum welding wires.
According to the report, one driver in market is increasing demand for lightweight vehicles. The global demand for aluminum has been on the rise with the growing demand for lightweight vehicles that use materials such as aluminum as a welding material to bring down the overall weight of a vehicle. The implementation of stringent global standards, such as the national pollution-control standards set by the US Department of Transportation or the US Environmental Protection Agency, has also fueled demand for aluminum welding wires. Aluminum is identified as a versatile material and is the second most chosen material after steel. It is used for applications in different end-use industries, such as building and construction, electrical, machinery, automotive, transportation, and other machinery.
Further, the report states that one challenges in market is price competition from Chinese suppliers. China is the largest producer and consumer of aluminum. It is focusing on balancing the internal market by discouraging the export of primary aluminum by imposing high duties. The government is also providing tax rebates for the export of semi-fabricated and value-added products. Due to this, the other regions of the world are facing high competition from semi-finished products from China. In addition, the importers of primary aluminum from China have to absorb the hike in prices. The hike in the prices of primary aluminum also gets transferred to the downstream products, including aluminum wire rods (raw material), powders, pastes, and flakes, thereby hindering the market growth. Though the import volumes for aluminum wire rods from China are comparatively low, price competition from Chinese suppliers may become a major challenge in future.