Analysts from Fastmarkets predict a slowdown in European automotive aluminium demand due to economic uncertainties and consumer caution. The primary foundry alloy (PFA) premiums have decreased significantly, with current prices at $500-520 per tonne, down from $600-650 in August 2023.
In 2023, the European light vehicle sector consumed 3.35 million tonnes of aluminium, accounting for 37% of primary aluminium demand. Despite a projected increase in aluminium use per vehicle by 2030, low vehicle output remains a challenge, impacting the PFA sector's performance amid declining sales from major automakers like Mercedes-Benz and Audi.
