German aluminium industry expecting slight economic downturn in 2019
- German aluminium industry cutting back production in many areas
- Expectations subdued
- Risk situation unchanged
The development of business activity in the aluminium sector in Germany was mixed in the first half of 2019: aluminium producers and processors had to reduce their production in the first half of 2019 (by 5.6 and 5.4 per cent respectively) while semis producers were able to increase theirs (by 1.9 per cent).
Expectations for 2019 are subdued: “The economic slowdown in our key industries is also reflected in the call-off figures so we are expecting production in our industry to decline,” explains Marius Baader Executive Director of GDA. “However, this will be offset partly by activity in the construction industry, which is still good, and a pleasing development in the packaging sector.”
Although the economic outlook for the aluminium industry is clouded in many product areas at the moment, the industry is still on a solid path of growth in the medium to long term. Christian Wellner, Managing Member of GDA’s Executive Committee adds: “Demand for aluminium will continue to grow globally and demand in Germany remains high. Furthermore, the German aluminium industry has also shown in the past that it can hold its own despite increasingly intense competition and cooling demand. This good performance is largely due to the high innovation potential of German companies and their good competitive position.”