Barclays Capital: Aluminum Demand Improving In U.S.

Data support the notion that aluminum demand is improving in the U.S., says Barclays Capital. The Aluminum Association’s March index of net new orders for aluminum mill products shows orders rose by 4% in March, although they were down 3% year-on-year. Still, combined with January and February, year-to-date orders are up by 9% year-on-year. “This broadly supports our view that metals demand in the U.S. has continued to improve in 2012, particularly supported by the strength in the auto and transportation sectors,” Barclays says. “In turn, the demand for ingot to feed such demand has played a part in pushing physical premia in the U.S. to near-record levels, further tightening a physical market with constrained access to inventory due to the impact of financing deals and long queues due to elevated cancelled warrants levels.”


Source:Kitco