Alcoa projects positive growth in the downstream aluminium market

Alcoa declared its Q4 2014 results on Monday revealing a leap in the profits ending the year on a positive note amidst a major transformation in the company portfolio. The company is shifting its focus from the upstream aluminium market to the downstream value-add market, with a special focus on the automobile and aerospace sectors.

The last year has been good in terms of global aerospace sales and the company expects the figures to jump another 9 to 10 percent in 2015 as the demand is robust in the large commercial aircraft, regional jets and jet engine sectors.

Alcoa expects a steady growth in the automotive sector as well with forecasts of 2 to 4 percent global automotive production triggered by the replacement demand and low lending rates in North America. The growing awareness of clear air regulations in China and the growth of the consumer middle class are also reasons contributing to the growing popularity of the light metal in automotive.

The global commercial transportation production looks stable for Alcoa with a negative 1 to positive 3 percent production projected by the company. The trucking market in North America, with a 3 to 7 percent growth rides high on strong orders and freight growth, while the packing market sees an estimated 2 to 3 percent of sales growth in 2015.

Alcoa projects 5 to 7 percent growth in the building and construction market and a global aluminium demand growth of 7 percent in 2015 mimicking the 7 percent growth seen in 2014.