Alcoa predicts 7 percent hike in aluminum demand in 2015

Author: Paul Ploumis13 Jan 2015 Last updated at 05:11:09 GMT

WASHINGTON (Scrap Monster): As the demand for aluminum in the construction of commercial as well as regional jets are increasing, the consumption rate of aluminum in the aerospace industry will hike by 10 percent. The Chief Executive Officer of the company, Klays Kleinfeld, stated that, the sale of aluminum to the US automotive customers, which includes the Ford Motor Co; the company which introduced its all aluminum Ford-150 pick up, is expected to increase by 5.8 percent.

The consumption of aluminum is outpacing the production in Europe, as well as in America, which helps to support the price of the commodity in those regions, even after the increase in the supply of the commodity in China, stated an analyst at Citi Group Brain Yu. He added that, the demand for aluminum in the global market is healthy.

Alcoa reported that, the company in the last year, had better sales than expected. The company had benefited from the hike in the price of aluminum as well as alumina, and also the increase in the strength of the dollar. The company also stated that, it exported record amounts of automotive aluminum sheets last year. The shares of the company in the regular trading in New York, rose by 2.4 percent.

The demand for aluminum is hiking up in the automobile industry, at the producers of the vehicles are increasing their focus on declining the weight to increase the fuel efficiency. Even though the energy prices have decklined in the recent months the trend would definitely continue.