Overcapacity in the Asian flat-rolled aluminum market may last for several more years, hurting prices and forcing producers to sell more material further afield, Novelis Chief Executive Officer Phil Martens said on Monday.
Without a significant recovery in China’s economy, demand will not be high enough to absorb the surplus sheet, mainly used in beverage cans and packaging, produced in China and washing around Asia.
Following two days of increases, the Indian aluminum cash price dropped by 1.4% to end at INR 126.75 ($2.07) per kilogram on Monday, November 10. At $2,077, the cash price of primary aluminum finished the market day on the LME up 1.2% per metric ton. After a 0.8% increase, the 3-month price of aluminum finished the day on the LME at $2,069 per metric ton.
Chinese aluminum prices closed flat for the day. For the fifth day in a row, the price of Chinese aluminum scrap remained essentially flat at CNY 12,250 ($1,995) per metric ton. The price of Chinese aluminum billet held steady at CNY 13,590 ($2,213) per metric ton. The price of Chinese aluminum bar remained essentially flat at CNY 14,200 ($2,312) per metric ton. The Chinese aluminum cash price saw essentially no change for the fifth day in a row, remaining around CNY 13,960 ($2,273) per metric ton.