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Aluminum Fence & Railing Supply

902 Sw 2nd Place
Pompano Beach Fl 33069

Mon - Thu - Fri 8:00 am - 4:00 pm

Phone: 954-247-9763
      Fax: 954-247-9764

Email: fencedistributors@hotmail.com

News Details

Sep 18 2013 - U.S. ALUMINUM DEMAND MARKET AFECTING THE FENCE AND RAILING INDUSTRY

Emerging Markets Driving Aluminum Demand



NEW YORK, NY, November, 2010
Aluminum prices have been up most of the month, fuelled by a weak US dollar and the recent declaration by the Federal Reserve of its intention to buy $600 billion of Treasuries. Emerging markets have been a huge source of revenue as populations and economies in China, Brazil and Russia markets have become richer leading to higher levels of building. One of the fundamental reasons for the turnaround in the aluminum industry has been the continued production discipline demonstrated by China. From 2002 to 2008, China had been a net exporter of aluminum, but has since become a net importer.
The Chinese Government recently announced that restrictions on power that will come into place in an attempt to rein in energy consumption might also affect the market well. Aluminum plants use a massive amount of energy, and once the power cuts come into effect, the plants are expected to be limited in their ability to produce. Recent reports from Reuters indicate that China will likely curtail another 600,000 tons of aluminum smelter production before the end of 2010. Alcoa's Chairman Klaus Kleinfeld said that "We believe, at this time, roughly 700,000 tons have already been shut down. We'll probably see 600,000 tons more shut down."
When industry giant Alcoa reported its much anticipated third quarter earnings, the company raised its 2010 global consumption forecast to a 13 per cent increase due to higher demand in China, Brazil and India.
Reports releases regular market updates on the aluminum industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Recently Century Aluminum reported a third quarter loss of $16.8 million on revenue of $279.2 million. The company swung to a loss as a result of charges from a few of its contracts. This situation is affecting dramatically the construction, roofing, fence, shutters industries among others.

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