Forbes
Automotive Demand For Lightweight Aluminum will improve Alcoa market
Edited by : AL CIRCLE
2 min read
The automotive sector is moving toward lighter materials for production in order to reduce vehicle weights and improve fuel efficiency and Alcoa is bullish on aluminum demand going forward.
Alcoa is the world leader in the production and management of primary aluminum, fabricated aluminum and alumina, and its ‘green’ commitment will also help it stand out vs. competitors like Rusal, Rio Tinto, BHP Billiton and Chalco.
The price estimate for Alcoa is significantly higher than the current market price.
The use of aluminum and other lighter materials in automotive manufacturing is on the rise and the company believes that this trend will continue in the future.
With the new fuel efficiency standard set by the Federal Government,auto manufacturers are testing out new materials that can be substituted for steel to reduce the weight of vehicles and in turn increase their fuel efficiency. Aluminum and its alloys have a high strength to weight ratio, so naturally it is a suitable substitute for steel, which is significantly heavier.
Efficiency is now an important metric across most industrial segments. Aluminum, a lightweight, durable and biodegradable product will continue to see robust demand going forward, which will lead to higher selling prices and strong shipments for Alcoa.
Alcoa is the world leader in the production and management of primary aluminum, fabricated aluminum and alumina, and its ‘green’ commitment will also help it stand out vs. competitors like Rusal, Rio Tinto, BHP Billiton and Chalco.
The price estimate for Alcoa is significantly higher than the current market price.
The use of aluminum and other lighter materials in automotive manufacturing is on the rise and the company believes that this trend will continue in the future.
With the new fuel efficiency standard set by the Federal Government,auto manufacturers are testing out new materials that can be substituted for steel to reduce the weight of vehicles and in turn increase their fuel efficiency. Aluminum and its alloys have a high strength to weight ratio, so naturally it is a suitable substitute for steel, which is significantly heavier.
Efficiency is now an important metric across most industrial segments. Aluminum, a lightweight, durable and biodegradable product will continue to see robust demand going forward, which will lead to higher selling prices and strong shipments for Alcoa.
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