Alcoa predicts 7 percent hike in aluminum demand in 2015

Published: Jan 14, 2015 10:48

Save

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.

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.

aluminum alcoa production aerospace auto-motives hike in demand China

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

13 hours ago

Fed Governor Milan Pushes for Over 100 Basis Points Cut, Contradicts Barkin on Caution

Federal Reserve Governor Milan pointed out that it is necessary for the US Fed to cut interest rates by more than 100 basis points this year. At the same time, he is very much looking forward to the performance of Kevin Warsh as Fed Chairman. However, Richmond Fed President Barkin emphasized that monetary policy must remain cautious until inflation fully pulls back to the target level, thereby ensuring the stability of the labour market.

13 hours ago

Democratic Senators Demand Delay in Fed Nomination Amid Criminal Investigation

All 11 Democratic members of the US Senate Banking Committee jointly sent a letter to the committee's chairman, Tim Scott, requesting that all nomination processes for the prospective Fed Chairman, Kevin Warsh, be postponed until the criminal investigation into current Fed Chairman Powell and other board members is concluded. However, Scott stated that Warsh's confirmation was a done deal.

13 hours ago

Fed to Keep Large Banks' Capital Levels Unchanged, Postpones Stress Test Reforms Until 2027

The US Fed has announced that it will maintain the capital levels of large banks unchanged during the upcoming stress test cycle (corresponding to the 2026 cycle). At the same time, the US Fed is planning multidimensional reforms to this annual test, aiming to enhance its transparency. The US Fed's Vice Chair for Supervision, Bowman, revealed that adjustments to the stress capital buffer requirements for large banks will be postponed until 2027. This move is intended to provide the US Fed with sufficient time to evaluate potential flaws that may be exposed in its testing models when assessing banks' financial conditions under simulated economic downturn scenarios.

13 hours ago