Chinese Aluminium supply surge over 9% in February, adds to the supply glut
Sunday, 01 April 2012 | 00:00
Chinese production of aluminium surged in February, potentially adding to the existing global glut, as per the latest data. China is one of the largest producer and consumer of aluminium in the world.
A recent report by the International Aluminium Institute stated that China's average daily primary aluminium output rose by 9.20% to 53,400 Mt in February as compared to 48,900Mt in January. This jump in Chinese aluminium output may counteract the effects of global production cuts. North American and European production has been decreasing in contrast due to planned cutbacks by aluminium producers.
RBS echoed the same sentiment in a recent research note. "Once again Chinese aluminium producers have in one fell swoop managed to eradicate all the work done by other producers in cutting smelting capacity”
Meanwhile, recent trends suggest that the surge in February will be followed by a decline in March. As per the data by the China Nonferrous Metals Industry Association (CNMIA), during the last 3 years, Chinese aluminium output has slipped in March after a surge in February.
Benchmark LME aluminium prices are trading around $2150/tonne, down from the high $3000 peak hit in 2008.
Source: Commodity Online
There are no comments available.