China’s Aluminum Production to Hit 14.5 Million Metric Tons in 2010

 

According to River Edge Nonferrous, aluminum production in China is likely to increase by 9%, reaching 14.5 Million Metric Tons in 2010, with the capacity idled in wake of financial crisis starting again after the rebound in prices, reported Bloomberg.

 

Peter Deneen, an industry consultant with New Jersey-based River Edge, states, “Chinese aluminum production has come roaring back and is likely to reach 13.3 million tons this year (2009), reported Bloomberg on October 28, 2009. It is noteworthy that the country’s aluminum output in 2008 was 13.2 Million Tons, as per the information disclosed by the China Nonferrous Metals Industry Association.

 

Entire credit for the growth implications being seen in the aluminum production in China, which is the world’s largest consumer and producer, goes to the stimulus package of 4 Trillion Yuan ($586 Billion) offered by the government. The stimulus aid boosted both demand and prices of the metal. It is learnt that smelters had cut production of the metal used in cars and aircrafts following the 36% decline in aluminum prices in 2008.

 

Moreover, China will also be benefited as the aluminum demand is surging, though slowly, but the production restarts outside China are expected to be few in the coming few months. In addition to this, market experts believe aluminum to remain in structural surplus for the near future unless and until market observes renewed producer discipline.

 

It’s obvious for China to rely on bauxite to feed its increasing alumina production capacity as the country has become self-sufficient in aluminum, or specifically in alumina, but has so far unable to attain that position in bauxite, revealed experts.

 

According to a Research Analyst at RNCOS, “Rising stocks and growing production have been the characteristics of the aluminum in China for the better part of the current year, though demand has remained bleak all around the world besides China. Nevertheless, now there are better implications for the aluminum industry with increasing orders and shipments for the metal. In the short-term, China is expected to see aluminum price behaving positively to every continuing sign of revival in the economy; however, this is well-supported by the immediate unavailability of the metal.”