World primary aluminum market 'largely well balanced' in 2020Posted by Ahmed Henry on February 1st, 2021 Norwegian producer Hydro anticipates the worldwide primary light weight aluminum market to be "mostly balanced" in 2020, it stated Wednesday. Worldwide main light weight aluminum usage lowered by 2.1% to 16.2 million mt in the 3rd quarter contrasted to Q2, mainly because of seasonality, yet was up 5.6% year on year, the business stated in its Q3 record. Outside China, need seasonally lowered by 2.8% in Q3 compared to Q2, while the year-on-year increase from Q3 2016 was 3.7%. Consumption outside China amounted to 7.3 million mt for Q3, while corresponding production totaled up to 6.8 million mt, a boost of 1.9% contrasted to Q2. "Production outside China experienced a 0.8% boost contrasted to the 3rd quarter of 2016, mainly driven by ramp up of new manufacturing capacity in India," Hydro claimed. Demand for primary light weight aluminum outside China grew by around 3.2% in 2016, and is anticipated to expand by 3%-4% in 2020, the company claimed. Compared to Q2 2020, Chinese aluminum intake lowered by 1.5% to 8.8 million mt, generally because of reduced seasonal task in Q3, yet the year-on-year rise compared to Q3 2016 was 7.2%. Corresponding aluminum production reduced by 0.1% compared to Q2, yet was up 12.9% contrasted to Q3 2020. "The ramp-up of new capacity continues in China, yet at the same time the federal government has actually ordered closing of plants, as some smelters are running without governmental authorizations," Hydro noted, adding that the Chinese federal government has actually also introduced that there will certainly be extra smelter curtailments in order to minimize wintertime air pollution in a variety of Chinese cities. Demand for main aluminum in China is anticipated to expand by about 6%-8% in 2020, with manufacturing expected to enhance by 10%-12%, the business claimed. Surfactant at the end of Q3 were 12 million mt, in line with 3 months previously as well as up 0.3% from a year previously, Hydro kept in mind. While London Steel Exchange supplies decreased additionally-- totaling up to 1.3 million mt at the end of Q3, down 100,000 mt over the quarter and also down 900,000 mt from year-earlier levels-- Chinese reported stocks boosted 400,000 mt from the end of Q2 and 1.4 million mt because the end of Q3 2020, the company stated. "Estimated unreported worldwide supplies have dropped 0.3 million mt contrasted to the 2nd quarter of 2020 as well as fallen 0.1 million mt contrasted to the 3rd quarter of 2019," Hydro stated.Like it? Share it! More by this author |