Alcoa Corp believes the global aluminum market is balanced after production cuts in China
The Alcoa Corp believes that the global aluminum market has reached a relative balance after the effect of supply side reform in China and the mandatory reduction of aluminum production".
China's largest aluminum producer has lowered its forecast for global aluminium surplus this year, in order to achieve the goal of energy saving and emission reduction.
Alcoa said in its third quarter earnings statement on Wednesday: "improvements are mainly due to China's smelting capacity plan and actual production cuts and China's demand growth."".
Alcoa said during its revenue reporting period that China had 1 million 800 thousand tonnes of -200 tonnes of aluminum this year. The forecast for July is 2 million 200 thousand -240 metric tons surplus. Alcoa predicts that the global aluminum market will reach a relative balance, between 300 thousand tons deficit and 100 thousand tons surplus. In July, Alcoa predicted a surplus of 300 thousand tons and 700 thousand tons worldwide.
"China has been taking practical action to restore the environment," Alcoa CEO Roy Harvey said in a telephone interview on Wednesday. Make sure the factory starts permission to make sure people breathe. Good news for the broad market that does not believe China can achieve its promises".
Thursday's data confirmed Harvey's point of view. Statistics Bureau data show that China's original aluminum production decreased to 2 million 610 thousand tons in September.