European aluminium semis order flow slows in May but expected to recover

Western European order inflow for both extruded and rolled aluminium products slowed in May but forward-looking indicators suggest that demand will remain good-to-strong in the coming period, according to the European Aluminium Association (EAA). The EAA notes that after a strong Q1 extrusion order intake "softened in April and May" with only a 0.6% year-on-year increase in April and a 6.6% decline in May---although the comparison period last year was one of very high growth. A similar pattern seems to be evident in order intake for rolled products with orders slowing in April and then falling by 3.8% in May. However, the EAA noted continuing strong readings in European industrial confidence and construction confidence indicators—which have a strong correlation with aluminium semis order intake—suggesting "good results for extrusion demand" and "strong" market conditions for rolled demand in the period ahead.