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Tom Stundza -- Purchasing, 10/7/2004
The metals trade press has been reporting that allocations of common alloy aluminum sheet by U.S. mills now stretch through the end of the year, and a growing number of buyers are looking offshore to ensure they'll have material next year. Some analysts are even projecting a 7% growth in sheet and strip purchases this year. However, the worried buyers are at service centers; OEM buyers say there's plenty of sheet around. In fact, PURCHASING surveys of end-use buyers find aluminum purchasing is at its lowest rate of growth in nine months. And, the aluminum industry's order index for sheet is sliding. Alcoa, the world's largest aluminum producer, just advised Wall Street that late-summer softness is affecting sheet sales to the high-volume automotive and packaging markets. Alcoa also says that while commercial transportation and aerospace markets are showing signs of strength, but that is bolstering primary aluminum ingot sales—and not sheet and strip products. Market analysts already have been forecasting no growth in sheet sales to packaging firms. The forecasters had expected 5% growth to automotive. However, the production cuts announced by North American automakers are reducing second-half aluminum demand.
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