Alcoa reports a rise in end markets

According to Alcoa yearly report their projected aerospace sales growth is a healthy 8 to 9 percent thanks to growing demands in both large commercial aircraft and regional jets. They have even revised their global automotive production growth for 2014 from a previous estimation of 1-4 percent to 2-4 percent in the second quarter. Growth in global packaging sales and global building and construction sales remained constant at 2-3 percent and 4-6 percent respectively in 2014. The projected decline in the industrial gas turbine market of 8-12 percent also remained unchanged for the year.

The company increased its estimate for production growth in the commercial transportation market in North America from a previous range of 10-14 percent to a revised range of 16-20 percent in the second quarter a first quarter rise from 5 to 9 percent. The increase in estimation has been triggered by 43 percent increase in truck orders in the third quarter on a YOY basis along with strong backlogs.

In the commercial transport market, Alcoa expects a more or less flat growth ranging from -1 to +3 percent in 2014 due to the weak European market in 2014. The projected global aluminium demand growth for 2014 is around 7 percent as per Alcoa.

Alcoa also reports a global aluminium deficit of 671,000 metric tons in 2014 and a declining surplus with the tightening of the alumina market, from 824,000 in the second quarter to 389,000 metric tons.