MIAMI Aluminum demand
growth has outpaced even the more bullish forecasts of the past
few years, according to Alcoa Inc. president of global primary
products Timothy Reyes.
Klaus Kleinfeld, the
Pittsburgh-based companys chief executive officer, in
2010 was among a number of top executives to predict rapid
demand growth over the next decade. He said that demand would
likely double between 2010 and 2020, but growth over the past
two years has exceeded even those expectations, Reyes said.
"Aluminum demand remains
outstandingyou cant argue against the merits of the
metal," he told delegates at AMM sister publication
Metal Bulletins 19th Bauxite and Alumina
Conference in Miami. "We said that demand would grow by roughly
6.5 percent per year, but so far were looking at
Reyes pointed to the trend of
lightweighting in the auto industry and growth in emerging
markets, especially China, as drivers for demand.
But low prices due to
overproduction have masked this otherwise bullish market
development, even as financing deals tie up the excess units so
that the market is broadly balanced.
"The aluminum market is
balanced, but about 30 percent of production is losing money,"
A version of this article
was first published by AMM sister publication Metal