Report confirms robust outlook for global HPA demand: Altech Chemicals

Altech Chemicals provides an update on the outlook for global high purity alumina (HPA) demand from a report entitled “High Purity Alumina Market – Global Industry Analysis and Forecast, 2016 – 2024” by Persistence Market Research.

Persistence has reported that Global HPA demand is likely to Increase on backdrop of growing applications. The report also says that the global consumption of HPA in 2015 increased to 21,309 tons from 17,832 tons in 2014, up 19.5%. The demand growth is expected to remain strong and the global market for HPA is forecast to reach 86,831 tons by 2024 from the current estimate of 25,315 tons, registering a growth of 343%.

Report Highlights:

• Global HPA demand up 19.5% YOY in 2015

• Annual HPA demand forecast to be 86,831tpa by 2024

• Report endorses Altech’s strategy is to focus on 4N HPA

• Lithium-ion batteries and LED sector to drive demand

• Current reported HPA price in Japan is ~US$30,000/t

• HPA has little threat of substitute

The report confirms that demand for 4N HPA (99.99% Al2O3) would continue to dominate the HPA market and account for 72% of HPA demand in 2024. Altech is targeting this market with the proposed construction of its Malaysian HPA plant. Persistence supports Altech’s strategy to focus exclusively on the 4N HPA market, due to the growth potential.

Persistence cites Altech’s 4N HPA market strategy in the report:

“…the company has planned a HPA production facility of 4,000 tons of 4N HPA, . . . . . Assuming that Altech’s HPA product offerings adhere to the purity levels which the company claims to achieve consistently, the planned production capacity of 4,000 tons is fairly reasonable and would help the company to establish itself as one of the leading players in the global HPA market.”

“…based on the analysis of current demand and projections till 2024, (Persistence) agrees that the HPA buyer market can absorb 4,000 tons of HPA on a yearly basis. With this production capacity, the company can position itself among the industry leaders . . . “

The report forecasts the LED sector and the Lithium-ion battery sector to drive the HPA market demand.

The report also mentions the exponential growth in the price of HPA, which is subject to grade and quality. However the report suggests that 4N HPA pricing would consolidate over the forecast period on the assumption that the majority of new HPA producers will adopt the lower cost acid-leach process for production. Altech is also undertaking the same process for its plants.

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