Chemical News
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Demand recovery to gradually ease China's aluminum surplus: SIC report
http://www.chemnet.com Jan 26,2015 Platts
As compared with other commodities with "absolute surplus," there will be stronger demand for aluminum as there is more potential for growth in the transport, machinery, construction, power and electronic sectors, it said.
Also, China's current per capita aluminum consumption is just 15 kilogram, compared with 25 kg in the advanced nations, thus implying there is room for consumption growth, it said.
Although the Chinese aluminum sector is currently undergoing immense hardships, but the surplus aluminum smelting capacity is seen to be transitional as the domestic aluminum output growth rate in recent years exceeded the capacity growth rate, the report said.
Over the past five years, China's aluminum smelting capacity grew at an average rate of 9.5% per year, whereas China's annual output rose by an average rate of 13.7% per year, the commission said.
China Nonferrous Metals Association, or CNIA, in December last year also said China should be able to ease its aluminum surplus in two to three years on the country's anticipated growing aluminum applications as well as determination in limiting capacity growth.
In spite of the surplus domestic aluminum smelting capacity, as long as something was done to ease the surplus, there should be sustained development in increased aluminum applications in the construction and transport sectors by 2016, CNIA said.
Chinese metals consultancy Beijing Antaike estimated the country's 2014 aluminum consumption at 27.5 million mt, up 11% from 2013.
In its aluminum sector report issued on December 10, the agency noted that after several months of weakness, aluminum consumption by the domestic construction sector increased in November.
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