Aluminum as one of the world's leading industrial metals, over the years the situation of "pile up in excess of requirement of Rusal, deputy chief General Oleg Mukhamedshin believes that the aluminum price trend period reflect industry reform achievements, the balance of supply and demand market has reached a long-awaited".
Oleg Mukhamedshin said: Chinese estimates the market oversupply still amounted to 1 million 200 thousand tons, but benefit from the factors of China environmental policy and "supply side" reform, I believe that will make "illegal" to curb the production capacity.
Data show Chinese market of about 5 million tons of illegal operation capacity has been closed, Rusal expected additional about 1 million to 2 million tons of operating capacity will be closed before the end of this year, and believe that the supply of aluminum will be Chinese this year rose 8.3% to 35 million tons.
Global demand for aluminium is increasing by 5.9% this year
In demand, the first half of the global economic growth to support demand for aluminum, for example, Mukhamedshin refers to the volume of housing construction in the United States before the global financial crisis has never appeared, leading North American aluminum demand rose 2%, plus Japan, China and India aluminum demand growth forecast for this year, the Russian Aluminum global aluminum demand increased by 5.9% year-on-year to 63 million 300 thousand tons, including Chinese outside the aluminum demand growth of 4.3% to 29 million 500 thousand tons, and Chinese aluminum demand growth of 7.4% to 33 million 800 thousand tons.
Mukhamedshin added that, another phenomenon reflects market supply is tightening Chinese outside the global aluminum inventories continued to decline by 12 last month fell about 24% to 3 million tons in August this year, while the consumption rate of aluminum inventories by the end of 2013 to 105 days of the end of August this year about 39 days.
Aluminum market "oversupply" situation or no longer, Russia aluminum expects the future aluminum market will even expand demand gap situation. The company predicted that this year the supply of aluminum reached 62 million 400 thousand tons and the demand for aluminum reached 63 million 300 thousand tons, this year there have been 1 million tons of demand gap, in 2018 and 2019, the gap is expected to reach close to 2 million tons and 2 million 100 thousand tons.