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10 January
San Francisco,
Dow Jones
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Alcoa Inc. (AA) is forecasting 9.6% growth in worldwide primary aluminum consumption this year, a slight dip from last year’s projected 10% increase in consumption. Still, consumption in North America should climb about 0.8% in 2008, according to the company, after sliding 9.5% in 2007. The aluminum giant is forecasting a 24% increase in China’s aluminum consumption this year, on the heels of an estimated 37.2% increase last year. Alcoa Chief Executive Alain Belda called the overall aluminum market solid on a conference call with analysts Wednesday to discuss the company’s fourth-quarter results. "The U. S. economy will muddle through 2008, and Europe will have a modest growth" rate, while emerging economies should continue to be strong, he said. Belda said all of the end markets served by Alcoa, such as the automotive and construction sectors, are expected to be up globally in 2008, even as some likely will be hobbled in North America. In Europe, Alcoa projected 2.1% growth in primary aluminum consumption this year, compared with 3.7% growth in 2007. Not counting China, the company expects 2008 consumption to climb 2.5% in Asia, compared with 2% last year. Shares of Alcoa rose 3.8% to $32.44 in late trading. | |||