Metal Products News
- Nation set to become top alumina maker
Date: 7-Dec-2006 Sources: (Shenzhen Daily)
CHINA, the world's fastest growing major economy, is expected to overtake Australia to become the top maker of alumina next year, prompting prices of the commodity to slump further, a top analyst at Beijing Antaike Information Development Co. said yesterday.
Production in China of the semi-finished material that used to make aluminum will jump by 45 percent to 20 million tons in 2007, Wang Feihong, chief analyst at Antaike, said.
Prices may average 2,000 yuan (US$255) a metric ton in 2007 compared with an average of 4,000 to 4,500 yuan this year.
China is the world's top user and producer of aluminum, the lightweight metal that is used to make beverage cans, window frames and autos.
Global prices of alumina, which is refined from bauxite, have been tumbling this year, falling 62 percent to US$255 a ton this month, according to Metal Bulletin.
'Both China and the rest of the world are ramping up their alumina output,'' Wang said.
The global supply aluminum will exceed demand by 250,000 to 300,000 tons next year, reversing a deficit of 300,000 tons this year, Wang said.
Prices of the metal on the London Metal Exchange, the world's largest such exchange, will decline to an average of US$2,320 a ton next year compared with US$2,550 this year, he said.
China's aluminum demand will increase by 25 percent next year to 10.7 million tons if the government keeps a tax-rebate policy unchanged on the export of aluminum products, Wang said.
'The fastest growth of aluminum consumption in China will come from wires and cables, which we expect to see 30 percent growth next year,'' Wang said. 'The transportation and automobile sector will also see strong demand growth.''
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