The global aluminum sector grow in 2025 to 2035 with several sectors like automobile, aviation, real estate, packaging, and electrical uses intensifying demand. The sector will reach USD 331.1 billion in 2035 with a Compound Annual Growth Rate (CAGR) of 6.1%. Building infrastructure it will drive the industry.
| Metric | Value |
|---|---|
| Market Size (2025E) | USD 183.1 Billion |
| Market Size (2035F) | USD 331.1 Billion |
| CAGR (2025 to 2035) | 6.1% |
The aluminum industry is undergoing great strides in meeting the expectations of the industrial world today while also raising challenges regarding environmental issues. More such needs are coming forth in the demands for the adoption of aluminum as a highly popular industrial metal.
With increasing fuel economy and electrically powered vehicles, the automobile sector is also rapidly adopting aluminum. The other market that uses aluminum in aerospace applications is the design and construction of aircraft because of the highest strength-to-weight ratio aluminum has.
On the other hand, growing consumption of aluminum in construction applications rounds out the picture, since aluminum is generally found in windows, doors, facades, and roofing. Urbanization and smart city initiatives across the globe are also contributing to this growth.
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North America remains at lead for aluminium because of strong demand from the automotive, aerospace, and construction industries. The United States and Canada are experiencing increase in use of aluminium in electric and lightweight vehicles. Fuel efficiency regulations imposed by authorities such as the Environmental Protection Agency are pushing automakers to employ greater usage of aluminium for vehicle platforms. The development of infrastructure and government policies for clean energy sources are all driving the demand.
The North American space industry is another major user of aluminium, as Boeing and Lockheed Martin are also investing in aluminium alloys that have high strength yet are lightweight and used in producing aircraft. On top of this, recycling industries in the area are well set up, leading to the usage of aluminium sustainably.
Europe also retains a prominent position in the aluminium market with Germany, France, and the UK dominating the developments in automotive and aerospace applications. The European Union's aggressive regulations pertaining to carbon emissions and sustainability have promoted the uptake of aluminium in electric vehicles as well as in renewable energy applications.
The European construction industry is also fueling demand, especially in energy-efficient buildings and green building projects. The fact that there are key aluminium producers like Norsk Hydro and Rio Tinto in the region also increases the market potential of the region. The move towards circular economy practices and aluminium recycling programs also boosts market growth.
The Asia-Pacific region is going to experience the biggest growth in the aluminium industry due to rising industrialization, urbanization, and infrastructure development. South Korea, Japan, India, and China are key aluminium consumers and producers, with the top position taken by China. The country's strong manufacturing sector and green energy and electric vehicle-friendly policies continuously increase aluminium demand.
India's expanding infrastructure sector, combined with the 'Make in India' initiative, is fueling the nation's domestic aluminium sector. The dominance of the region in electronics, packaging, and construction sectors further fuels demand. Environmental concerns over bauxite mining and aluminium refining remain a cause of concern, and firms are gravitating towards sustainable and energy-efficient ways of producing.
Challenges
One of the critical problems in the aluminium sector is the energy-intensive production process. Aluminium refining takes a lot of electricity, making production costs high and causing environmental problems. Raw material price fluctuation, particularly bauxite and alumina, also causes market instability. Pressure from regulatory bodies regarding emission and carbon footprint reduction is another challenge for players in the industry.
Recycling is a critical area of focus, since aluminium manufacturing entails large amounts of waste. While aluminium is highly recyclable, recycling is constrained by the technology and logistics for effective recycling. The firms must invest in new technologies to render aluminium manufacturing more environmentally friendly.
Opportunities
The growing use of aluminium in electric vehicles represents a substantial opportunity for growth. As the world moves towards EVs and lighter vehicle parts, aluminium is a material of choice for battery housing, chassis, and body parts. Technological improvements in aluminium alloys and composite materials also have opportunities in the aerospace and high-performance markets.
Sustainability drives are pushing investment in green aluminum production, such as hydro-smelting and carbon capture technologies. Those firms that specialize in minimizing their carbon footprint and facilitating environmentally friendly aluminium solutions are going to benefit at the cost of others. Further, large infrastructure projects, especially in emerging economies, are poised to generate a huge demand for aluminium in infrastructure and transport segments.
During 2020 2024, the aluminum industry witnessed growth with rising demand in automotive, aerospace, construction, packaging, and electronic industries. Growing demand for lightweight, high-strength, and corrosion-resistant materials drove the evolution of aluminum application in transportation, renewable energy, and consumer products.
Governments and industries set their sights on sustainability and energy efficiency and hence recycled aluminum became very common, along with low-carbon smelting technology. The shift towards electric cars (EVs) and high-performance infrastructure once more stimulated the demand for aluminum alloys and advanced manufacturing methods.
The automotive sector was the primary driver of market expansion, with aluminum being used in vehicle bodies, battery compartments, wheels, and body panels to enhance fuel efficiency and minimize emissions. The building sector applied aluminum for windows, facades, structural framing, and roofs, taking advantage of its high strength and low maintenance needs. In addition to this, the aerospace sector led to the integration of aluminum alloys in aircraft wings, fuselages, and interior parts with weight saving and improved fuel efficiency.
The packaging sector experienced skyrocketing demand for aluminum cans and foils attributed to rising beverages consumption and environment-friendly packaging technology. Despite the strong growth, the industry struggled with supply chains, raw material price volatility, and carbon footprints. But technological advancements in smelting, refining, and alloys guaranteed consistent market growth as well as competitiveness.
With sustainability at top, businesses invested in low-carbon aluminum production techniques, such as hydroelectricity in smelting, carbon capture technology, and hydrogen reduction processes. Recycling rates of aluminum improved considerably as industries aimed at minimizing raw material reliance and optimizing material circularity. The advancements in smart manufacturing methods and automation of processes facilitated increased efficiency, waste minimization, and reduced costs in producing aluminum.
While geopolitical tensions and trade barriers from time to time influenced aluminum supply chains, localized production investments and strategic alliances smoothed market volatility. On the whole, the aluminum market demonstrated robustness and maintained innovativeness in gearing up for even greater revolutionizing events in the subsequent decade.
The period stretching from 2025 to 2035 is indeed undergoing drastic changes in the aluminum industry owing to technological advances, sustainability requirements, and changes in industrial applications. With carbon footprints of aluminum products minimized, increased recyclable levels, and the development of entirely new lightweight alloys for automotive, aerospace, and renewable energy applications, the future looks bright. Innovations in robotics and AI will change the face of aluminum production from ore to alloy by streamlining the entire process.
Green aluminum production through renewable energy, hydrogen-based smelting, and carbon capture will seal the upcoming decade's fate. The energy transition is becoming more accelerated worldwide, leading to debris derived demand in aluminum for electric vehicles, their battery technology, and frames of solar panels. 3D printing and additive manufacturing naturally allow for customization in the production of aluminum parts, improved performance, and material efficiency, with little waste and production costs.
The next-gen aluminum alloys are promising to disrupt aerospace applications with their significantly higher strength-to-weight ratio and thermal stability in hypersonics and space applications. The demand for biodegradable coatings and smart packaging would also increase in the packaging sector, thereby enabling further diversification toward a more sustainable and intelligent product delivery.
Industries will most likely be developing systems for closed-loop aluminum recycling in the era of the circular economy, causing a lot less waste and a more efficient resource use. The durability of aluminum will be enhanced using advanced coatings, embedded nanotechnology, and AI predictive maintenance.
Construction must evoke self-repairing aluminum structures spatially and temporally adaptive materials and green building solutions that enhance sustainability and energy efficiency. Lightweight, high-strength alloys will spur advances in electric aviation, rail transport, and autonomous vehicles. This will lead to improved performance while consuming less energy.
| Market Shift | 2020 to 2024 |
|---|---|
| Regulatory Landscape | Governments enforced carbon emission limits, recycling mandates, and energy efficiency standards. |
| Technological Advancements | Industries adopted advanced smelting processes, lightweight alloys, and high-strength aluminum. |
| Industry Applications | Aluminum was widely used in automotive, aerospace, packaging, and construction sectors. |
| Environmental Sustainability | The industry transitioned toward recycled aluminum, low-VOC coatings, and eco-friendly production. |
| Market Growth Drivers | Demand was driven by lightweight materials, renewable energy, and electric vehicle adoption. |
| Production & Supply Chain Dynamics | Supply chains faced fluctuations in raw material availability, geopolitical risks, and logistics challenges. |
| End-User Trends | Consumers prioritized sustainable packaging, lightweight transportation, and durable building materials. |
| Investment in R&D | Funding focused on low-carbon smelting, improved alloy compositions, and additive manufacturing. |
| Infrastructure Development | Aluminum played a critical role in urban development, transport infrastructure, and industrial expansion. |
| Global Standardization | Regulations varied across regions and industry segments. |
| Advanced Aerospace & Defense Applications | Aluminum alloys enhanced aircraft fuselages, military armor, and structural components. |
| Smart Aluminum Coatings & Surface Treatments | Early research focused on corrosion-resistant, high-durability aluminum finishes. |
| Electrification & Renewable Energy | Aluminum played a role in solar panels, wind turbine components, and power grid infrastructure. |
| Market Shift | 2025 to 2035 |
|---|---|
| Regulatory Landscape | Stricter policies will mandate low-carbon aluminum production, hydrogen-based smelting, and carbon-neutral supply chains. |
| Technological Advancements | The market will integrate AI-driven production, additive manufacturing, and self-repairing aluminum coatings. |
| Industry Applications | New applications in battery technology, hydrogen storage, space exploration, and AI-enhanced manufacturing will emerge. |
| Environmental Sustainability | Full adoption of carbon-free aluminum production, circular economy principles, and closed-loop recycling systems. |
| Market Growth Drivers | The focus will shift to high-performance alloys, energy-efficient production, and autonomous aluminum processing plants. |
| Production & Supply Chain Dynamics | Companies will invest in localized production, AI-optimized supply chains, and energy-independent aluminum smelting plants. |
| End-User Trends | Future demand will emphasize intelligent aluminum structures, self-healing alloys, and climate-adaptive materials. |
| Investment in R&D | Increased investment in hydrogen-powered aluminum production, AI-driven predictive maintenance, and next-gen aerospace applications. |
| Infrastructure Development | The industry will transition to self-repairing materials, climate-resistant aluminum structures, and green infrastructure solutions. |
| Global Standardization | A unified framework for net-zero aluminum production, recycling efficiency, and AI-driven compliance monitoring. |
| Advanced Aerospace & Defense Applications | Next-gen aerospace materials will feature hypersonic aluminum alloys, space-grade coatings, and AI-enhanced structural integrity. |
| Smart Aluminum Coatings & Surface Treatments | Future developments will integrate self-healing, conductive, and AI-responsive aluminum coatings. |
| Electrification & Renewable Energy | The industry will expand into hydrogen storage solutions, ultra-lightweight battery enclosures, and next-gen EV chassis design. |
United States aluminum market is recording slow growth driven by rising demand from the building, automotive, aerospace, packaging, and alternative energy industries. Rising trends of light-weight and fuel-efficient cars have led to the use of aluminum in automobiles widely by replacing heavier metals like steel to reduce fuel consumption and comply with Corporate Average Fuel Economy (CAFE) standards. Apart from this, the demand for aluminium and eco-friendly products from recycling is leading the use of aluminium in packaging for food and beverages, largely through the aluminium can and foil package type.
The Infrastructure Investment and Jobs Act (IIJA) has continued to propel the development of the aluminium market through investment in advanced, capital-intensive infrastructure construction, power grid development, and transportation development, all of which demand high-performance aluminium technology. The expanding aerospace market is also a driver of growth, as Boeing and Lockheed Martin expand aluminium use for aircraft frames and fuselage components because of its high strength-to-weight ratio and corrosion resistance.
Though all these are optimistic tendencies, the USA aluminium industry is still subject to raw material price fluctuations, carbon-intensive high-carbon energy use, and escalating environmental challenges. To offset such issues, the industry is focusing on low-carbon production and recycling technology of aluminium that is cost-friendly in the long run and is also sustainable.
| Country | CAGR (2025 to 2035) |
|---|---|
| USA | 4.5% |
The UK aluminium industry is consistently growing behind building, transport, and sustainability. It strongly motivates the major demand among all sectors such as automotive, packaging, and renewables for low-carbon aluminium, due to the UK's Net Zero drive, which aims at achieving net zero carbon emissions by 2050 in this country. Expansion of electric vehicle manufacturing in the UK, especially backed by Rolls-Royce and Jaguar Land Rover, enhances the demand for lighter aluminium parts to improve the energy efficiency and range of such vehicles.
The UK government's infrastructure investment is also supporting demand for aluminium, as new projects in railway development, commercial building construction, and green energy solutions gain momentum. In addition, increased recycling activities have encouraged companies to invest in aluminium scrap processing as well as circular economy initiatives to make aluminium supply chain sustainable.
However, after-Brexit trading regimes, unstable energy prices, and supply chain disruptions remain issues for the UK aluminium sector. Despite these issues, companies are investing in onshore aluminium production facilities and renewable energies in an effort to reduce carbon prints and boost the efficiency in production.
| Country | CAGR (2025 to 2035) |
|---|---|
| UK | 4.2% |
The European aluminium sector has been enjoying boom times thanks to soaring demand from important end-use industries such as automotive, construction, packaging, and renewable energy. Besides, the fact that the EU has economic targets toward carbon neutrality and circular economy policies imposed on the manufacturers was continuously driving more and more production of green and low-carbon aluminium solutions.
Increasing demand is being recorded for lightweight aluminium parts for use as chassis, battery enclosures, and structural components in electric vehicles, as production has been ramped up in the likes of Germany, France, and Sweden. The growing solar and wind energy projects are further elevating the consumption of aluminium for solar panel frames and wind turbine components in the European Union.
The dramatic growth that Europe's aluminium recycling industry is now experiencing is on account of heavy capital inflow into secondary aluminium production aimed at reducing dependence on energy-intensive primary production. Significantly, the European Union has worked to give a competitive edge to domestic producers of low-carbon aluminium by imposing a ban on high-carbon aluminium imports.
| Country | CAGR (2025 to 2035) |
|---|---|
| European Union (EU) | 4.8% |
Auto innovations, electronics manufacturing, and construction activities affect Japanese aluminium. Being a leader in hybrid and electric vehicle (EV) manufacture, Japan increasingly creates demand for lightweight aluminium components every day.
The consumer electronics sector, powered with giants like Sony and Panasonic, is also a major consumer of aluminium in products such as smartphone enclosures, laptops, and semiconductor devices. High-strength aluminium alloys are also driven by Japan's ongoing high-speed rail network and earthquake-resistant construction activities.
| Country | CAGR (2025 to 2035) |
|---|---|
| Japan | 4.1% |
The South Korean aluminium market is gaining further momentum with rising investments in EV production, renewable energy, and smart infrastructure. The automobile and battery manufacturers require aluminium, with companies such as Hyundai and Samsung SDI fuelling the demand.
Steel consumption in South Korea is increased by its advanced shipbuilding and electronics industries, with lightweight ship components and 5G infrastructure displaying increased applications for aluminium. Additional governmental incentives for green energy and smart city projects will further enhance aluminium adoption.
| Country | CAGR (2025 to 2035) |
|---|---|
| South Korea | 4.3% |
The Series 5 and Series 6 aluminum alloys are greatly relied upon by the aluminum industry because of the ongoing expectations of the entities towards lighter, higher strength, and corrosion-resistant materials. Series aluminum has extensive application in the aerospace, automotive, construction, and even marine industries, for such organizations search for more durable, energy-efficient, and structurally sound materials.
Magnesium-aluminium (Al-Mg) alloys made up of Series 5 are in high demand owing to their high corrosion resistance, weldability, and strength-to-weight ratio. They are ideally suited for marine, transport, and infrastructure where they are exposed to moisture, chemicals, and environmental stresses and thus need to be strong and long-lasting.
Series 5 aluminum is widely used in the marine industry for ship building and in constructing boat hulls. Also, offshore platforms are created from this series. These alloys have a great advantage over others in that these materials are able to bear the most aggressive conditions in saltwater without the loss of structural integrity or corrosion. The requirement of fuel-efficient, lighter, and environmentally friendly ships is also one of the reasons that very rapidly accelerated the introduction of Series 5 aluminum into commercial and defense naval ships.
Series 5 aluminum alloys are also increasingly used for the construction of automobile body panels, frames, and structural components in vehicles by the automotive sector. Currently, there are design improvements in these vehicles that will bring about weight reduction and fuel economy improvements. Fuel-efficient and environment-friendly regulatory provisions have thus led to such pressure on automobile manufacturers to keep building vehicles with aluminum-intensive designs to achieve reduced carbon footprints and improve vehicle performance. Electric vehicle (EV) manufacturers especially rely on lightweight aluminum alloys to enhance battery range and optimize energy consumption.
Series 5 is used in the building sector, remaining outside the transportation area, in bridges, and architectural buildings and industrial processes where corrosion resistance and strength are paramount. To reduce maintenance costs, the alloys are used in the construction of skyscrapers, stadiums, and transportation centers.
Aluminum-magnesium-silicon alloy comprises series 6 aluminum alloys that are themselves mainly represented by aluminum-magnesium-silicon (Al-Mg-Si) alloys. High-strength, corrosion-resistant, and heat-treatable material specifications are the core parameters on which aerospace, automotive, and industrial applications primarily depend. Mechanical properties of the alloys with superior wear and fatigue life make these prime choices of industries for aircraft structures, automobile components, and high-performance equipment.
Aircraft fuselage, wing frames, and landing gear manufacture are significantly reliant on Series 6 aluminum. Aerospace manufacturers favor the strength-to-weight ratio because it maximizes fuel economy and loads, but also guarantees safety and performance during severe operating conditions. Increased demand from commercial and military aviation has revealed great usage of high-strength aluminum alloys.
Series 6 aluminum alloys have come to a really vast number of applications in the automotive industry with their usage in chassis components, wheels, and crash boxes. Automakers are very keen on such alloys to optimize car safety, reduce weight, and improve crash energy absorption. Specifications for electric vehicle technology have also increased demands in quantities as manufacturers continue to use lightweight aluminum alloy battery casing and electric motor mounts to further optimize vehicle efficiency.
For example, strong structures, pressure vessels, and accurate parts have well maximized applications in the industrial and structural applications that invariably depend on Series 6 aluminum. Fabricators appreciate the alloy's resilience to mechanical stress, heat expansion, and atmospheric wear, assuring sustained performance in harsh industrial environments.
These two classes of aluminum alloys are however suffering from incessant price variations and problems concerning supply chains. But still, innovations in recycling technology, alloy purities, as well as hybridization of materials have increased cost-effectiveness and sustainability, which further drive applications of these alloys in industries.
Aluminum castings and extrusions are the largest processing segments in the aluminum industry, as manufacturers highly depend on cost-effective, high-precision, and scalable manufacturing processes. Such processes are utilized in automotive, aerospace, construction, and industrial machine industries, where aluminum corrosion resistance, toughness, and lightness are most vital.
Aluminum castings command a lion's share in the market because industries need to use light-weight, high-strength parts in automotive, aeronautical, and industrial machine applications. The die casting, sand casting, and investment casting processes are applied by producers in order to get precise, light-weight components of high-dimensional tolerance and mechanical attributes.
The automotive sector is the biggest user of aluminum castings, which it uses in engine blocks, transmission cases, suspension parts, and structural support. Car manufacturers prefer cast aluminum components because they can minimize weight, enhance thermal conductivity, and maximize fuel efficiency. With the increasing popularity of electric vehicles (EVs), manufacturers use cast aluminum battery enclosures and electric motor cases to maximize performance and safety.
The aerospace industry also relies on aluminum castings for aircraft engine parts, landing gear components, and structural elements. The high strength-to-weight ratio and resistance to extreme temperatures of aluminum make it the best material for aerospace applications, providing maximum performance under severe flying conditions.
Outside transportation, aluminum castings find their application among manufacturers of industrial equipment in hydraulic components, medical instruments, valves, and pumps where weight-reduction, corrosion-free material provides enhanced efficiency and life.With growing automation and precision production, the use of high-quality aluminum cast components will continue to expand.
Aluminum extrusions serve a vital function in building, industrial equipment, and energy usage since industries need high-strength, tailored, and energy-saving materials. Extrusion methods are employed by manufacturers to produce complex aluminum profiles, which improve the structural performance, assembly convenience, and design freedom.
The building industry significantly depends on extruded aluminum profiles in windows, doors, curtain walls, roofing, and modular structures. Extruded aluminum is most favored by builders and architects for its lightness, corrosion protection, and recyclability, resulting in sustainable and long-lasting infrastructure solutions.
The renewable energy industry has also boosted demand for aluminum extrusions, especially in solar panel frames, wind turbine parts, and energy storage devices. The drive towards carbon neutrality and green energy solutions has prompted manufacturers to create high-performance extruded aluminum products that maximize energy efficiency and long-term durability.
Industrial uses also take advantage of aluminum extrusions in machine frames, conveyor belts, and automation devices, where high-strength yet light materials enhance operational performance and maintenance processes. Growth in factory automation, robotics, and precision engineering has spurred additional investment in high-strength extruded aluminum products.
In spite of difficulties with raw material costs, energy-intensive processing, and supply chain interruptions, aluminum extrusion technology is developing further. New developments in alloy composition, surface finishing, and modular design capability enable manufacturers to improve product performance, lower costs of production, and increase application across various industries.
The aluminium market is a dominant segment of the global metals business that is pushed by demand in automotive, aerospace, construction, and packaging industries. Global industrial giants and local players are mainly responsible for guaranteeing a smooth flow of aluminium and emphasizing sustainability, lightweight design, and low-carbon production. The aluminium market is influenced by the advancements in recycling technologies, growing industrial applications, and initiatives by the government to enhance sustainable alternatives.
Market Share Analysis by Company
| Company Name | Estimated Market Share (%) |
|---|---|
| China Hongqiao Group | 14-19% |
| UC Rusal | 9-13% |
| Alcoa Corporation | 7-11% |
| Rio Tinto Aluminium | 5-9% |
| Emirates Global Aluminium (EGA) | 4-8% |
| Other Companies (combined) | 45-55% |
| Company Name | Key Offerings/Activities |
|---|---|
| China Hongqiao Group | The world’s largest aluminium producer, focusing on cost-efficient production with a vertically integrated supply chain. |
| UC Rusal | A leader in sustainable aluminium production, known for low-carbon aluminium and a strong presence in global markets. |
| Alcoa Corporation | Specializes in high-performance aluminium alloys, emphasizing energy-efficient production and recycling initiatives. |
| Rio Tinto Aluminium | Develops high-quality aluminium products, investing in hydro-powered smelting technology to reduce carbon footprint. |
| Emirates Global Aluminium (EGA) | A key producer of premium-grade aluminium, catering to the automotive and aerospace industries with innovative solutions. |
Key Company Insights
China Hongqiao Group (14-19%)
China Hongqiao Group is the market leader in aluminium due to its cost-effective, mass production. Its vertically integrated supply chain ensures streamlined operations and lower overall costs. It is constantly increasing its global presence while keeping a strong domestic base in China.
UC Rusal (9-13%)
UC Rusal excels in ensuring sustainable aluminium production, with one of the industry's lowest-carbon aluminium products. The fact that the company uses hydropower for smelting is environmentally friendly, contributing to meeting the world's sustainability objectives.
Alcoa Corporation (7-11%)
Alcoa is a major player known for its high-performance aluminium alloys and emphasis on recycling and energy-efficient production. The company actively invests in technology to lower energy consumption while maintaining high-quality output.
Rio Tinto Aluminium (5-9%)
Rio Tinto Aluminium is a pioneer in sustainable aluminium production, leveraging hydro-powered smelting to minimize carbon emissions. The company is involved in advanced R&D efforts to develop eco-friendly solutions for various industries.
Emirates Global Aluminium (EGA) (4-8%)
EGA plays a vital role in supplying premium aluminium to the automotive and aerospace sectors. The company focuses on innovation and efficiency, ensuring high-quality products while adhering to strict environmental standards.
A significant portion of the market is held by regional producers and specialized aluminium suppliers contributing to innovation, sustainability, and efficiency. These include:
The overall market size for Aluminium market was USD 183.1 Billion in 2025.
The Aluminium market is expected to reach USD 331.1 Billion in 2035.
Rising demand for lightweight, corrosion-resistant, and high-strength materials across various industries will propel the aluminium market. Expanding applications in automotive, construction, and aerospace further boost market growth. Moreover, advancements in aluminium processing technologies and increasing investments in recycling and sustainable production will accelerate market expansion.
The top 5 countries which drives the development of Aluminium market are USA, UK, Europe Union, Japan and South Korea.
Series 5 and Series 6 Aluminum Alloys to command significant share over the assessment period.
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Aluminium Market
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