Alcoa Inc. (Alcoa) expected future development of the automotive and aerospace markets quickly, the automotive industry and later in the year will bring many opportunities. Because car manufacturers are increasingly inclined to cost-saving metal materials to improve vehicle performance, safety, durability and fuel efficiency, Alcoa estimated that in 2014 the automotive industry will increase the usage of aluminum products.
Alcoa mainly produce aircraft fasteners, taking into account the growth in demand for large commercial aircraft and business jets market continues to grow and so the two factors, Alcoa adjusted the 2014 demand growth forecast raised to 7-8% from the original 8-9% .
In addition, Alcoa continued commitment to cut the cost of the upstream business profitability while developing downstream business. The company has adopted a series of adjustment measures (including the closure of the smelter) and is actively seeking ways to reduce costs.
However, Alcoa will continue to overcome the problem of weak aluminum prices, aluminum prices during the first quarter, down 8%. Metal market is still oversupply, aluminum prices remain under pressure.
