The global aluminum market, after several years of surplus, is now experiencing a deficit. The key factor for the improvement in the price of aluminum is the growth in global use of aluminum, especially in China. The price range is likely to be in the range of $ 1900 - $ 2000 per ton.
Ford Motor's plans to use metallic aluminum in its best-selling Ford Truck F-150 will significantly increase the use of light metal. In addition, aluminum is massively used in the production of pharmaceutical equipment, building materials, aluminum conductors cable avvg , electronics parts, packaging, dishes and other areas. Meeting the high demands of various sectors will lead to an increase in the growth of the aluminum market.
Last year, aluminum consumption growth in China, which is the leader in the use of this metal, was more than 1 percent year on year, which amounted to about 25.2 million tons. And this year, global aluminum consumption outside of China is expected to grow by three percent, and in China by 10 percent.
Taking into account this fact, it is predicted that the global aluminum market will face a deficit of about 1.2 million tons in 2014 and another 985 thousand tons next year. After 2015, experts see limited opportunities to add capacity outside of China, as no new projects have been proposed to invest in the development of the aluminum industry.
Equity trends have also changed significantly over the past 12 months. LME aluminum stocks have declined year-to-date to their lowest level in 13 months by more than 260,000 tonnes, accounting for 55 percent of all LME stocks.
