Will global aluminum demand exceed output next year? “Japanese trading house Sumitomo Corp., which has stakes in smelters from Brazil to Australia, forecast aluminum will swing into a deficit next year for the first time since 2006 as lower prices accelerate output cuts,” reports Bloomberg.
“Global demand will outpace supply by 37,000 metric tons from a surplus of 312,000 tons estimated for this year, said Shingi Yamagiwa, manager of light metals trading at the Tokyo-based company.”
“Aluminum prices are down 18 percent over the past year on the London Metal Exchange. Top producers including United Co. Rusal, Rio Tinto Group and Alcoa Inc. have announced output cutbacks. China has tried to curb the capacity of its plants that account for almost half of world output, weighing down prices in a market that’s over-supplied.”
In metal price news for aluminum…
On Friday, February 7, the day’s biggest mover was the aluminum 3-month price, which saw a 0.6 percent decline on the LME to $1,697 per metric ton. The cash price of primary aluminum weakened by 0.5 percent on the LME, settling at $1,654 per metric ton. The Indian aluminum cash price gained 0.4 percent to finish.
Chinese aluminum prices closed flat for the day. The price of Chinese aluminum scrap saw essentially no change for the fifth day in a row. The price of Chinese aluminum billet remained essentially flat. The price of Chinese aluminum bar was unchanged. The cash price of Chinese aluminum remained essentially flat.