ID :
73507
Mon, 08/03/2009 - 15:53
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https://oananews.org//node/73507
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Dubal sales rise as Mideast, Asia demand grows
Dubai, Aug 3, 2009 (WAM) - Dubai Aluminium Co (Dubal) said on Sunday that sales rose 5 per cent in the second quarter as demand remained strong in Asia and the Middle East according to a report by Reuters.
Sales volumes for the second quarter were 275,055 metric tonnes, compared to 261,972 metric tonnes in the same period last year, state-owned Dubal said.
"Asia and the Middle East remain our traditional largest markets," it said.
Inventory levels during the second quarter this year were also at the "lowest ever" level, the statement added.
Dubal said its smelter is still running at full capacity of 960,000 metric tonnes a year. "Our projected hot metal production for 2009, based on smelter capacity, is 960,000 metric tonnes. Dubal's entire annual production is made to order and pre-sold."
Wan Ling, a senior aluminium consultant at CRU International in Hong Kong, said gains in the automotive sector could be driving the move.
"Demand for aluminium is improving now, as there is a pick-up the auto sector in Asia, that's why Dubal might be seeing higher sales," she said.
"And since we have seen huge cuts in global production due to the economic conditions, any pickup in demand will have a have a very positive result on sales and lower inventory levels."
Dubal said in May that it expected sales to fall 20 per cent in the second quarter, amid high global inventories. During the first quarter of the year, Dubal's sales fell 30 per cent as a result of a slowdown in the automotive sector, Abdullah Kalban, Dubal's chief executive, said at the time.
Aluminium producers worldwide have taken about 15 per cent of global capacity offline to match the recessionary demand which slowed down automotive and construction sectors.
Dubal said in Sunday's statement that production volumes have not been altered, but alterations were made in the company's product mix.
Aluminium prices fell more than 50 per cent to a low of around US$1,300 (Dh4,775) per tonne earlier this year. The price has since recovered to around US$1,800 per tonne.
Sales volumes for the second quarter were 275,055 metric tonnes, compared to 261,972 metric tonnes in the same period last year, state-owned Dubal said.
"Asia and the Middle East remain our traditional largest markets," it said.
Inventory levels during the second quarter this year were also at the "lowest ever" level, the statement added.
Dubal said its smelter is still running at full capacity of 960,000 metric tonnes a year. "Our projected hot metal production for 2009, based on smelter capacity, is 960,000 metric tonnes. Dubal's entire annual production is made to order and pre-sold."
Wan Ling, a senior aluminium consultant at CRU International in Hong Kong, said gains in the automotive sector could be driving the move.
"Demand for aluminium is improving now, as there is a pick-up the auto sector in Asia, that's why Dubal might be seeing higher sales," she said.
"And since we have seen huge cuts in global production due to the economic conditions, any pickup in demand will have a have a very positive result on sales and lower inventory levels."
Dubal said in May that it expected sales to fall 20 per cent in the second quarter, amid high global inventories. During the first quarter of the year, Dubal's sales fell 30 per cent as a result of a slowdown in the automotive sector, Abdullah Kalban, Dubal's chief executive, said at the time.
Aluminium producers worldwide have taken about 15 per cent of global capacity offline to match the recessionary demand which slowed down automotive and construction sectors.
Dubal said in Sunday's statement that production volumes have not been altered, but alterations were made in the company's product mix.
Aluminium prices fell more than 50 per cent to a low of around US$1,300 (Dh4,775) per tonne earlier this year. The price has since recovered to around US$1,800 per tonne.
