FINANCIAL MAIL
Aluminium good business in long run
Edited by : AL CIRCLE
1 min read
Prospects for the aluminium industry have worsened in the short term, with prices and margins weakening on fears of a global economic slowdown.
Yet in the long term and the right environment, aluminium — used in a range of products from beverage cans to roofing — can be a good business.
Natixis Commodity Markets says in its fourth-quarter Metals Review there is likely to be solid demand growth for aluminium in the next few years because of rising incomes in developing countries. Prices will be underpinned by rising energy costs, since this is an energy- intensive industry.
Alcoa, the world’s biggest producer of primary and fabricated aluminium, which has about 5Mt of smelting capacity around the world, recently reported disappointing third-quarter earnings as aluminium demand slowed and prices softened.
Yet in the long term and the right environment, aluminium — used in a range of products from beverage cans to roofing — can be a good business.
Natixis Commodity Markets says in its fourth-quarter Metals Review there is likely to be solid demand growth for aluminium in the next few years because of rising incomes in developing countries. Prices will be underpinned by rising energy costs, since this is an energy- intensive industry.
Alcoa, the world’s biggest producer of primary and fabricated aluminium, which has about 5Mt of smelting capacity around the world, recently reported disappointing third-quarter earnings as aluminium demand slowed and prices softened.
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