Aluminium moves ahead in construction in MEA

Arabian Business reported that some important market players in the construction segment in UAE are quire upbeat on usages of aluminium products. When asked that how are shifting commodities prices affecting the aluminium sector and what does this mean for construction industry firms, Mr Daniel Taylor business development manager of Aluma Systems Middle East said that “Aluminium is one of the most utilized materials in the construction industry with virtually no major projects today completed without its use.” While replying to another question that why is the material so popular and how are commodity price fluctuations and the downturn in the construction sector affecting the aluminium market, he said that “Aluminium is a highly versatile commodity with products manufactured from the material ranging from formwork to window frames and cladding, making its use applicable to all stages of the construction process.” Mr Taylor said that "It is very easy to cut, reshape and maintain, if it needs to be cut to a new length this is simple and requires unskilled labor. The only way to damage it is to bend the product." Mr Taylor said that "Another major benefit is it’s quicker and easier to install and requires less labor to use. With shoring equipment, for example, steel weighs twice as much and needs more time and labor to install 100 square meter of aluminium table form can be moved by crane but you couldn’t do that with steel due to the weight you would need 4 pieces for 100 square meter." Mr Taylor said that the price of aluminium like many other raw materials has been fluctuating greatly over the past year due both to the global economic recession and the price of oil. The price of aluminium is directly correlated to that of oil. Mr Youssef Khachan commercial manager of curtain walling firm Alico said that “The chemical composition and physical characteristics of the material are major advantages. First of all it does not rust, second it is lightweight and it has no reaction to the external environment. In addition to its non corrosive properties, aluminum’s ease of handling is a major factor for its popularity in the construction industry.” Mr Khachan said that the aluminium price was down 60% at the end of 2008 compared to mid 2008 it has gone up again by 50% over the last few months. This sudden change in price is linked to the oil price rather than demand for the material. Mr Modar Al Mekdab MD of Gulf Extrusions said that “The demand for aluminium products is increasing as aluminium is used in a lot of new applications. It can be specified in different colors or with surface treatments such as anodizing or powder coating.” Mr Geoff Tydeman area manager of Aluma Systems Middle East said that “It is primary aluminium that is mainly used in the construction industry. The price of this commodity over the last 5 years or so has been somewhat volatile with prices peaking in August 2008, prices being affected by supply and demand and energy costs.” Mr Tydeman said that “Prices receded dramatically over the period to February and March 2009 since that period prices are again on the increase but at a slower rate. The prices of finished aluminium extruded products have followed the same trend.” He said that the effect of construction industry slowdown is also playing a part in the prices that aluminium contractors and manufacturers can command. There was a big change in demand for aluminium in the GCC due to the number of projects that were cancelled or put on hold. The rates we are seeing now in our aluminium and glazing contracts are 40% less than in 2008 and this is associated with demand as well as the metals price. London Metal Exchange lists the price of primary aluminium in January 2009 as USD 1413 per tonne falling slightly to USD 1330 per tonne in February before rising to USD 1420 per tonne in April. In July 2009 the price of primary aluminium was USD 1667 per tonne; it then fell by 5% to USD 1561 per tonne between in mid July reports global construction consultancy Davis Langdon. (Sourced from Arabian Business)