Demand for aluminium is extremely sensitive to global real GDP.
aluminium giant Alcoa just announced its Q2 earnings and they were better than expected. And management reiterated its expectation for 7 per cent global demand growth for 2012.
The following two slides come from Alcoa’s earnings presentation. The first looks at demand growth from industrial end markets. The second looks at demand growth based on regional end markets.
As you can see, 7 per cent global demand growth is good, but it’s not as good as the 10 per cent growth we saw in 2011.