Rusal Predicts 2017 Aluminum Deficit To Be Over 2 Million Tons; Chinese Aluminum Scrap Down 4.2%

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Rusal is making predictions…

“Output of aluminum outside China will trail demand by 2.4 million metric tons in 2017, eroding stockpiles and reversing a decline in prices, said United Co. Rusal, the largest producer of the metal,” reports Bloomberg.

“’We already see the aluminum market falling into deficit due to curtailments and strong consumption,’ Deputy Chief Executive Officer Oleg Mukhamedshin said in an interview in Moscow. ‘Rising aluminum premiums are a good sign of this. We expect the market deficit, excluding China, will only grow until at least 2017 due to increasing demand and capacity cuts.’”

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“Prices for aluminum, used in products from beverage cans to aircraft, have slumped 16 percent in 2013, heading for the second annual drop in three years. The metal is trading at the lowest level since 2009, with stockpiles of aluminum stored in warehouses tracked by the London Metal Exchange close to the record reached in July. The aluminum price declined 0.2 percent yesterday to $1,739 per ton.”

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The price of Chinese aluminum scrap closed Wednesday, December 4, halting its three-day flat run with a 4.2 percent drift. The price of Chinese aluminum billet fell 0.4 percent on Wednesday. The Chinese aluminum cash price showed little movement on Wednesday. The price of Chinese aluminum bar held steady.

After falling 0.3 percent to $1,740 per metric ton, the 3-month price of aluminum reached a 30-day low on the LME. The cash price of primary aluminum fell to a 30-day low after shifting 0.3 percent. The cash price of primary Indian aluminum rose 0.2 percent.