09 FEBRUARY 2014gulfnews.com
Guessing game continues over aluminium demand
Edited by : AL CIRCLE
1 min read
This could be the year the world at last stops churning out much more aluminium than it can use, as economic recovery begins to stoke demand while some producers cut output after years of falling metal prices.
At least that is what a few aluminium smelters and bankers are predicting, going against a consensus view that surpluses of production over demand are set to continue.
Whatever happens, prices this year are unlikely to rally because there is a huge overhang of stocks, estimated at 10-15 million tonnes globally, although much of this is kept sitting in warehouses earning cash via investment deals.
The price of aluminium — mainly used for packaging, construction and transport — has shed nearly 50 per cent since 2008, forcing loss-making companies to slash capacity in recent years.
At least that is what a few aluminium smelters and bankers are predicting, going against a consensus view that surpluses of production over demand are set to continue.
Whatever happens, prices this year are unlikely to rally because there is a huge overhang of stocks, estimated at 10-15 million tonnes globally, although much of this is kept sitting in warehouses earning cash via investment deals.
The price of aluminium — mainly used for packaging, construction and transport — has shed nearly 50 per cent since 2008, forcing loss-making companies to slash capacity in recent years.
Previous article
CME Is ‘on track’ with aluminum futures contract as premium trade takes a rise
Next articleLME Aluminum Prices Plummet, Monthly Index at All-Time Low
Grow with
AL Circle
