Korea’s Top Aluminum Producers See Dip in February Sales Amid Mixed Market Dynamics
February witnessed a slight downturn in sales volumes for Korea's leading aluminum flat producers—Novelis Korea, Choil Aluminum, and Daeho Al. The combined sales totaled 61,766 tons, marking a 2.9% decrease from the previous year's 63,624 tons. Despite this overall decline, there were varied performances across domestic and export markets among the companies.
Notably, Novelis Korea experienced a boost in domestic shipments, rising by 8.9%, while Choil Aluminum and Daeho Al faced setbacks, with declines of 5.4% and 28.9%, respectively. On the export front, Novelis Korea and Choil Aluminum managed to increase their shipment volumes, but Daeho Al witnessed a significant reduction.
The collective export shipment for the three companies saw a 5.5% year-over-year decrease, dropping from 37,546 tons to 35,491 tons. This downturn was highlighted by a 6.2% decline at Novelis Korea, a substantial 41.9% drop at Choil Aluminum, and a sharp 65% fall at Daeho Al.
Amid these varying trends, Novelis Korea stood out by enhancing its domestic sales from 15,228 tons to 16,579 tons—an 8.9% improvement, surpassing the average range of 13,000~19,000 tons observed last year. However, the company's export performance dipped by 6.2%, impacted by waning demand in the canned aluminum flat and automotive aluminum sectors.
Choil Aluminum faced challenges in both domestic and international markets, attributable in part to a slowdown in the electric vehicle industry, which significantly utilizes automotive aluminum foil sheets.
Despite these market challenges, the prospect of increased demand for secondary batteries provides a silver lining. The Korean government's commitment to investing 117.2 billion won in next-generation battery development, in collaboration with the Big 3 aluminum producers, holds promise for a surge in demand for secondary battery components.
Daeho Al, on the other hand, managed an impressive 65% boost in export demand, compensating for a 28.9% decrease in domestic shipments.
