LONDON–(BUSINESS WIRE)–Technavio’s latest report on the aluminum manufacturing market in Turkey provides an analysis on the most important trends expected to impact the market outlook from 2016-2020. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.

This market in Turkey is expected grow at a CAGR of over 3% during the forecast period, according to Technavio’s recent report.

Aluminum manufacturing market in Turkey: in a nutshell

Chandrakumar Badala Jaganathan, a lead analyst from Technavio, specializing in research on metals and minerals sector, says, “Urbanization in Turkey is likely to boost investments in commercial and residential real estate, which, in turn, is expected to contribute to the growth of the construction industry. High investments in R&D, designing, and branding are also contributing to the growth of automotive industry in Turkey.”

The construction sector is a major consumer of aluminum, accounting for a market share ranging between 23% and 26%. There has been a rise in the use of recycled aluminum in the construction sector, primarily in the manufacture of doors and window profiles. The construction of new shopping and leisure venues is generating revenue for extruders of aluminum in the country.

The top three emerging trends driving the aluminum manufacturing market in Turkey according to Technavio chemicals and materials research analysts are:

• Focus on export of downstream aluminum products
• Increase in R&D and modernization
• Focus on increasing market penetration

Focus on export of downstream aluminum products

“Manufacturers operating in the downstream aluminum-based products market produce over 900,000 tons of products annually, including extrusions, flat-rolled products, and secondary aluminum. The construction, automotive, and packaging industries in Turkey are key end-users of these products. However, domestic demand is limited compared to supply and, hence, manufacturers are focusing on exports for growth. Aluminum extrusions and flat-rolled aluminum products are some of the key product categories that are in considerable demand from export markets,” according to Chandrakumar.

Increase in R&D and modernization

Manufacturers in both the primary aluminum and downstream aluminum products markets are increasing their R&D budgets to develop products that meet the standards of their end-users, particularly global automotive and construction companies. Burak Aluminyum, one of the leading aluminum extrusion companies in the country, is involved in the R&D of high resistance alloys such as 6061, 6082, 5083, and 7075. ETI Aluminyum is another key manufacturer that is focusing on modernizing its production processes to enhance productivity. The company is using ABB’s electrical equipment to increase production while cutting down on power consumption.

Focus on increasing market penetration

The primary aluminum market in Turkey is under-penetrated, with only a sole manufacturer catering to market demand. Turkey has substantial reserves of bauxite (over 80 million tons), which is one of the primary raw materials used for producing aluminum. Turkey accounts for over 0.3% of the world’s bauxite reserves, including diasporic, boehmitic, and diasporic-boehmitic bauxite. However, currently, the country exploits only its boehmitic bauxite reserves for the production of primary aluminum. This provides a potential opportunity to new entrants that seek to exploit the diasporic reserves for the production of primary aluminum.

Segments in the downstream aluminum products market, such as the aluminum foils and wire rods segments, are also largely under-penetrated, thereby presenting potential growth opportunities for manufacturers.

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