Housing Starts

According to the U.S. Census Bureau, privately-owned housing starts in April were at a seasonally adjusted annual rate of 2.038 million.  This is 11% above the revised March estimate of 1.836 million and is 3.6% above the revised April 2004 rate of 1.968 million starts.  Single family housing starts in April 2005 were 6.3% above the March figure of 1.538 million.  Multi-family starts for April were 351,000.

Electricity Outlook

According to the U.S. Department of Energy, electricity demand is expected to increase by 2.6% in 2005 and by an additional 2.4% in 2006 due largely to continuing economic growth, following estimated demand growth of 1.6% in 2004.

Aluminum Supply

•          US primary aluminum demand grew by 4.6% year on year in 1Q05.  Both construction demand and automotive requirements boosted consumption.

According to industry analysts, construction demand is expected to remain strong as rebuilding continues in Florida and along the Gulf coast.

•          Aluminum analysts expect world primary production to rise by a healthy 5.7% in 2005 with China remaining the key driver despite a slight slowdown thus far in 2005.  Primary production is expected to increase in other parts of the world, notably Canada and the Middle East.