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N. American April aluminum mill order index up slightly from March

Increase font size  Decrease font size Date:2014-05-14   Views:453
The North American net new aluminum mill order index rose 0.32% in April compared with March, according to the Aluminum Association.

New mill orders increased 0.02% compared with April 2013, but the year-to-date index slipped 1.16%, the group said late Friday.

April plate orders fell 14.17% compared with March, and were down 13.02% from April 2013. April sheet orders were down 3.93% from March and fell 2.28% compared with the year-ago period.

April orders of extruded products increased 5.78% from March and were up 4.24% compared with April 2013.

The group said foil orders in April rose 8.63% compared with March and were up 9.15% from April 2013.

Orders of domestic can stock increased 1.41% compared with March, but were down 3% from April 2013. April orders of export can stock rose 5.72% from March, and were up 11.42% on a year-on-year basis.

The index is based on reports of new orders, minus cancellations, received by 22 participants for the previous month. Figures in the report are neither seasonally adjusted nor adjusted to account for work days.

Research analyst Timothy Hayes of Lawrence Capital Management said that orders on a seasonally adjusted basis "increased nicely in April, although trends were mixed across product types."

When seasonally adjusted, the total orders excluding can sheet were up 5% from March, he said, and orders continued their upward trend so far in 2014.

He reiterated that the index data in April and May will be more telling to the industry's underlying strength following a harsh winter. "A further rebound will be needed for our forecast for a 4% increase in North American shipments in '14 to come to fruition," he said.

The analyst said extrusion products were showing noticeable strength so far in 2014, suggesting a recovery in construction markets. However, sheet aluminum orders, excluding what goes into cans, continue to struggle, showing little change in April. Hayes said it was "a bit concerning not to see more of a bounce following a harsh winter."

 
 
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