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Sapa expects US aluminum extrusion demand to rise in 2013
Edited by : AL CIRCLE
2 min read
US aluminum extrusion demand is expected to rise slightly this year, despite a slow start to the year, according to Jeff Henderson, Director of Marketing and Business Development for Sapa North America.
The market has gotten off "to a slower start," he said, citing Aluminum Association data that showed that the US net new order index for extruded products was down 3.1% January-April 2013 versus a year before.
However, extruded product orders were up 11.6% in April from March and up 10.8% from April 2012. For Sapa's part, Henderson said the extrusion major is seeing demand in the "positive territory although it's modest." Sapa for the year is expecting extrusion demand growth of 1-3% year over year.
But, Henderson cautioned, that is predicated on two key issues -- a strong automotive sales rate and momentum in the housing market. LMC Automotive is forecasting a total light vehicle sales outlook for 2013 at 15.4 million units for North America. That is flat from 2012, which was up 18% higher than 2011.
And he said Sapa's second-quarter order intake "was better, especially in residential building and construction." However, rod and bar demand was off 4-5%, he said, citing Aluminum Association figures, and this is offsetting growth seen in the other areas.
Henderson said there are new opportunities for extrusions in the transportation, construction and electrical applications.
The market has gotten off "to a slower start," he said, citing Aluminum Association data that showed that the US net new order index for extruded products was down 3.1% January-April 2013 versus a year before.
However, extruded product orders were up 11.6% in April from March and up 10.8% from April 2012. For Sapa's part, Henderson said the extrusion major is seeing demand in the "positive territory although it's modest." Sapa for the year is expecting extrusion demand growth of 1-3% year over year.
But, Henderson cautioned, that is predicated on two key issues -- a strong automotive sales rate and momentum in the housing market. LMC Automotive is forecasting a total light vehicle sales outlook for 2013 at 15.4 million units for North America. That is flat from 2012, which was up 18% higher than 2011.
And he said Sapa's second-quarter order intake "was better, especially in residential building and construction." However, rod and bar demand was off 4-5%, he said, citing Aluminum Association figures, and this is offsetting growth seen in the other areas.
Henderson said there are new opportunities for extrusions in the transportation, construction and electrical applications.
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