The amount of aluminium used in cars is growing by some 5% every year, according to Barclay’s analyst Gayle Berry who was speaking to Bloomberg, and is expected to increase further as consumer’s looks for more fuel efficient cars.
In a consumer survey aluminium producer Alcoa found that in 2012, 83% of potential car buyers were willing to pay more for a car that was more fuel efficient, up from 54% in 2008.
One example of this is that of the popular Ford pick-up truck, the F-150, which is set to be re-designed with a much higher aluminium content in order to reduce its weight by up to 750 pounds (350 kilograms).
“The F-150 is the best-selling vehicle in North America, and would likely trigger all other truck makers to convert” to increased aluminium content, said Kenneth Hoffman, Princeton-based sector head for metals and mining research at Bloomberg Industries.
Aluminium prices are currently around a third lower than they were in 2008, which has put pressure on suppliers of the metal who are struggling to make money. An increase in demand from auto-makers will provide a boost to these suppliers but will put further pressure on steel suppliers.
