Page 13 - Altogether Magazine Issue 4 English

13 production capacities in quantity, quality and timeliness. All these trends will work together to make the industrial sector in the GCC States a new headquarters for global Aluminium companies and the best investment destination in this region of the world. The Aluminium price index in the global markets is considered the biggest challenge for the Aluminium industry in the region and the world. The Aluminium industry depends on the macroeconomic trends of countries. The negative impacts resulting from the lower Aluminium prices in the global markets vary from one country to another, depending on the availability of the raw materials, the energy required and the level of costs of production and marketing. The Gulf Aluminium industry is recognized as being the least affected by the global declines in Aluminium prices. Also, the Aluminium prices at the London Stock Exchange are reported to have taken a downward path since March of this year till the end of July before rising upward during August; they fell from 1,911 USD/ton levels of competition, mergers, partnerships and the in March to 1,760 USD/ton at the end of July (a 7.9% financial and economical changes, which in most cases decline) while during August the Aluminium prices rose achieve production size of a high cost and accelerate to 1,816 USD/ton - a 3.2% rise. the expansion of industry towards the countries having better industrial potentials and more resources. Additionally, there is a continuous rise in aluminum prices, reaching an average price over a three-month This trend – towards consolidation and partnership period of 1,866 USD/ton during the first week of October – will bring about the production of Aluminium of 2013. The performance of the Aluminium industrial high value and low cost; that is, the decision-makers sector in the productive GCC States is not expected to in the Aluminium industry sector are required to record significant declines during 2013 as a direct result focus on managing the general and operational costs of the globally lower Aluminium prices, compared with and evaluate the trend of establishing partnerships the ‘fair’ price, estimated at a minimum of 2300 USD/ and mergers which reflect, in general, huge capital ton, due to the GCC’s flexibility in prices and efficiency in investments that can meet the challenges of the operation and production. markets and the unexpected variables outlined above. The GCC States, adopting the Aluminium industry Given the conditions and variables surrounding the as a vital component of the national economy, rely Aluminium industry during the coming period, the more on the development of Aluminium uses than decision-makers of this industry will build up strategic, on the increasing demand, since the industry is regional and global joint alliances and partnerships, seeing more producers and a high increase in the rather than merely compete on the local, regional and productive capacities of the present producers. The foreign markets. construction sector will retain the largest share of Aluminium demand at the global level, followed by the In addition, they will move towards the development transportation sector. Due to the development of various of the industry so as to be more valuable, influential Aluminium applications and uses in all other sectors, the on their economies, and more versatile in production, index of usage diversity will be the important catalyst responsive to the evolution of applications, and in for both the Gulf Aluminium industry’s plans for growth, particular the growing demand in the construction, expansion and competition, and the use of the most packaging, and transport sectors. In addition, the advanced techniques in this field. assessment of the shared grounds of the Aluminium industry in the GCC States will reflect positively in cost reduction, greater capacity to external expansion, an increase in the type and number of jobs, and rising