Paul Williams, research manager aluminium, at CRU Analysis states in the Aluminum Association newsletter that demand should bounce back in March supported by government stimulus plans and an improving economy.
The company’s survey of downstream companies suggests activity in flat rolled and extruded demand has continued to recover in North America, albeit coming from a low base. With pay-rolls in the USA declining less than expected, this is broadly encouraging for the US economy, although it still seems there will be a jobless recovery
However, the recent decline in sales of homes once again illustrates there is still a long road before any meaningful pick-up in the market gets under way.
In Europe, activity among rollers maintained improvement in February but activity in the extrusions market was shakier. Mr Williams added economic indicators remain supportive of the view that a global recovery is still intact, despite risks of sovereign default.