Platts
Sapa expects 5-7% aluminum extrusion growth this year
Edited by : AL CIRCLE
2 min read
US aluminum extruder Sapa expects North American aluminum extrusion growth of 5-7% this year, primarily driven by "overall economic conditions," according to Jeffrey Henderson, vice-president of marketing for Sapa North America.
Speaking Monday at the Platts Aluminum Symposium in Fort Lauderdale, Florida, he said in North America, the transport market is expected to grow by 5-10%, while the distribution, industrial, residential building and construction and automotive should see 0-5% growth. The North American commercial building and construction market is expected to be flat to down 5%. But he noted that the 5-10% rate is "comes off of a low base."
In Europe, the distribution, industrial transport and automotive markets are expected to be flat to up 5% this year, while the commercial and residential building and construction markets are expected to see flat to negative growth of 5%.
Henderson added that in China -- where he said the market is performing well on the extrusion side -- the industrial and commercial building and construction market are expected to see 10-15% growth, while transport and automotive should see 5-10% growth.
He said demand for North American building and construction will be driven by new housing starts, "which will be marginalized by the continued erosion of aluminum as the material of choice."
Henderson said North America should see 5-10% growth in housing starts and 205% in repair and remodeling.
The market forecast for 2012 transportation and automotive, Henderson sees auto and trailer production increases of 5-10% in 2012, with an increase in aluminum content in vehicles. Class 8 truck demand will outpace all other applications, increasing 15-20%. The market is seeing low inventories and increased demand, with modest increases in aluminum content.
Henderson added that the "aluminum industry must find new ways to promote the usage of aluminum. Otherwise, we will continue to be hostage to unpredictable economic cycles."
Speaking Monday at the Platts Aluminum Symposium in Fort Lauderdale, Florida, he said in North America, the transport market is expected to grow by 5-10%, while the distribution, industrial, residential building and construction and automotive should see 0-5% growth. The North American commercial building and construction market is expected to be flat to down 5%. But he noted that the 5-10% rate is "comes off of a low base."
In Europe, the distribution, industrial transport and automotive markets are expected to be flat to up 5% this year, while the commercial and residential building and construction markets are expected to see flat to negative growth of 5%.
Henderson added that in China -- where he said the market is performing well on the extrusion side -- the industrial and commercial building and construction market are expected to see 10-15% growth, while transport and automotive should see 5-10% growth.
He said demand for North American building and construction will be driven by new housing starts, "which will be marginalized by the continued erosion of aluminum as the material of choice."
Henderson said North America should see 5-10% growth in housing starts and 205% in repair and remodeling.
The market forecast for 2012 transportation and automotive, Henderson sees auto and trailer production increases of 5-10% in 2012, with an increase in aluminum content in vehicles. Class 8 truck demand will outpace all other applications, increasing 15-20%. The market is seeing low inventories and increased demand, with modest increases in aluminum content.
Henderson added that the "aluminum industry must find new ways to promote the usage of aluminum. Otherwise, we will continue to be hostage to unpredictable economic cycles."
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