Alcoa boosts profits in the automotive industry

In the second quarter, Alcoa's consolidated revenue, which consists of the Alcoa and Arconic segments, was $ 5.3 billion, down 10 percent from last year. This decline is the result of lower prices for aluminum and alumina, which have not been offset by recent 4% growth.

The rental segment, as a result of strong deliveries from the auto industry, brought in $ 68 million, up 17 percent from last year. The transportation and construction solutions segment brought in $ 46 million, an increase of 5 percent. Automotive sheet metal supplies hit record levels.

The bauxite segment is struggling for new orders. Alcoa expects to improve the situation in the aviation market in the second half of this year and in 2017. During the year, the increase in shipments for this segment is expected to grow by 3 percent, and next year the growth will already be double-digit. The automotive market is expected to grow by about 1 to 4 percent. In the segment of trucks, trailers and buses, the market is expected to increase in Europe and China, but a decrease in the North American market by 1 percent. The company predicts growth in other markets.

Low prices for natural gas in the USA and the launch of new models of gas turbines for industry are increasing the demand for aluminum sheets from manufacturers of these devices and their parts. The packaging market is expected to grow by 1 to 3 percent and the construction market by 4 to 6 percent.

According to Alcoa, the global aluminum deficit will reach 775,000 tonnes this year, as demand growth will be accompanied by only a small increase in production. The alumina deficit is expected to reach 1.5 million tons.