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Aluminium prices set to rise
Edited by : AL CIRCLE
1 min read
One of the world's top aluminium producers has forecast that prices will rebound later this year as suppliers cut output, mothballing some smelting plants because of the low price of aluminium, which will result in reduced global supply.
Laurent Schmitt CEO of Aluminium Bahrain BSC, the second largest producer of the metal in the Middle East, told Bloomberg that, "Less-competitive smelters will have to reduce their production capacity or even shut down," adding that this would rebalance demand and supply and lead to the recovery of London Metal Exchange prices.
Another large producer, Alcoa Inc., recently announced that it would shut-down or reduce 12% of its global smelting capacity after prices slumped.
On the LME, aluminium prices for 3-month delivery reached $1,956 a metric tonne on 14 December which marked a 17 month low, well below its peak of $2,803 in May.
Laurent Schmitt CEO of Aluminium Bahrain BSC, the second largest producer of the metal in the Middle East, told Bloomberg that, "Less-competitive smelters will have to reduce their production capacity or even shut down," adding that this would rebalance demand and supply and lead to the recovery of London Metal Exchange prices.
Another large producer, Alcoa Inc., recently announced that it would shut-down or reduce 12% of its global smelting capacity after prices slumped.
On the LME, aluminium prices for 3-month delivery reached $1,956 a metric tonne on 14 December which marked a 17 month low, well below its peak of $2,803 in May.
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