Aluminium Sheet & Extrusions

July 1 - Market Outlook Issue

• Scrapping schemes are helping for now: Market Summary

  01 July 2009

  The markets for aluminium FRP and extrusions are performing better in Asia and the Middle East.

• Prices and margins are leveling out in North America, but face pressure in Europe : Prices and Margins - Extrusions

  01 July 2009

  The surge in the LME price has not yet damaged margins in North America or Europe, but there is mounting pressure.

• Margins weaken in North America but remain firm in the Middle East: Prices and Margins - Flat Rolled Products

  01 July 2009

  The surge in LME prices is having an impact on North American margins, but is having no impact in the Middle East, where the domestic market for FRP is still bouyant.

• Summer will bring longer than usual shutdowns at extruders: North American Market Analysis

  01 July 2009

  The extrusion business in North America is not better but is not worse either. The summer will be long and quiet, and may see further casualties among those linked to the automotive sector.

• Shipments consolidate at slightly higher levels: North American Market Analysis - Flat Rolled Products

  01 July 2009

  Positive macro data has yet to have an impact on the FRP markets

• De-stocking may still have some way to go: European Market Analysis - Extrusions

  01 July 2009

  It is not clear whether de-stocking in the European extrusion market has finally ended, but things will be clearer after the summer season.

• Stability is our base case scenario for Europe: European Market Analysis - Flat Rolled Products

  01 July 2009

  After a market collapse that extended into the first quarter of the year, there is finally a slight improvement in the European FRP market. However, we do not expect any big surge anytime soon.

• Chinese material has not yet reached western markets: Asian Market Analysis - Extrusions

  01 July 2009

  The Chinese government has recently increased VAT rebates on exports, but without a recovery in demand in the exports market, it may fail to boost Chinese exports

• The Asian market is more promising than in Europe: Asian Market Analysis - Flat Rolled Products

  01 July 2009

  Distributors in the region are starting to replenish stocks and taking advantage of spot deals. Meanwhile, in China, the stimulus package has proven positive.

• Optimism reign among Middle Eastern extruders: Middle Eastern Market Analysis - Extrusions

  01 July 2009

  Extruders in the Middle East believe the construction market will recover soon, as high oil prices will encourage consumption

• Local demand remains stable: Middle Eastern Market Analysis - Flat Rolled Products

  01 July 2009

  FRP mills in the Middle East still enjoy a strong domestic market. Exports however are extremely low.

• 3-month LME price is rangebound: Raw Materials Analysis

  01 July 2009

  LME prices are being pushed down by more stock growth, but being pushed up by continued cancelled warrants.