In 2025, Southeast Asian countries such as Vietnam and Indonesia will accelerate the promotion of transportation, energy and urban construction projects, driving a surge in demand for aluminum bars. Taking Indonesia as an example, super-large infrastructure projects such as the second phase of the Jakarta-Bandung high-speed railway and the new capital Nusantara have been implemented, and the purchase volume of aluminum bars in a single quarter has increased by 28% year-on-year. Vietnam relies on the expansion of the North-South Expressway and the construction of photovoltaic power station clusters. The import volume of aluminum bars has exceeded 500,000 tons/year, of which building structural profiles account for more than 65%.
Behind the growth of regional demand, the lightweight and corrosion resistance of aluminum bars have become the core considerations for the selection of materials for infrastructure projects. The Indonesian government explicitly requires that the proportion of recycled aluminum used in new public facilities should not be less than 30%, further stimulating the upgrading of low-carbon aluminum bar technology.
Supply chain challenges: the dual game of cost and capacity
Despite strong demand, the aluminum bar supply chain in Southeast Asia still faces multiple challenges:
Raw materials rely on imports: Although Indonesia has abundant bauxite reserves, its local electrolytic aluminum production capacity is insufficient, and it needs to import aluminum ingots from China and Australia, pushing up processing costs;
Environmental protection policies are tightened: Vietnam has set a carbon emission cap for industrial zones, forcing companies to adopt recycled aluminum technology, but the local recycled aluminum capacity utilization rate is only 55%, and technical bottlenecks lead to a cost premium of 15-20%;
Logistics efficiency shortcoming: Indonesia's islands are scattered, and cross-regional transportation costs account for 12%-18% of the terminal price of aluminum bars, and there is an urgent need to optimize the storage network.
Industry Outlook
The infrastructure investment cycle in Southeast Asia is expected to continue until 2030, and the annual demand for aluminum bars will exceed 3 million tons15. It is recommended that companies focus on the supporting projects of Indonesia's new energy industrial park and Vietnam's rooftop photovoltaic bracket bidding. The premium space for aluminum bar procurement in these two areas can reach 8%-12%.
