Colombia's Alumina sees higher aluminum sales on construction boom

Colombia's aluminum manufacturer Alumina expects to boost sales by 8% this year, on rising demand from the country's construction industry.

Alumina, which handles 50% of Colombian aluminum sales, is cutting exports to the US, South America and Central America to focus 70% of its business on the local construction market, CEO Carlos Echeverri said. Aluminum imports from China, Mexico and Ecuador account for 30%, while the remaining 20% comes from other local companies.

"Importers are very aggressive and profit margins are minimal," Echeverri told local newspaper Portafolio. "Exports can generate growth, but only through manufactured products that create added value."

Alumina saw sales drop 4.2% to 230bn pesos (US$119mn) last year, of which US$20mn came from exports, due to slumping aluminum prices and competition from cut-price Chinese imports, Echeverri said. Prices have since rebounded, hitting an 18-month high of US$2,100/t on Tuesday on the London Metal Exchange.

Sales to the local energy and transport industries have dropped 30%, while demand from the construction industry has jumped as much as 30% for some aluminum products, according to the executive.

The company stopped producing discs and industrial foil to focus on a range of 36 new products, including construction profiles, doors and windows and other custom-made products, he said.

Aluminum prices in London have jumped 26% since hitting a four-and-a-half year low on February 3, gaining 0.1% to US$2,088/t on the LME Thursday.