Global aluminum production is projected to grow by an average of 6% per annum in 2018 and 2019, with production reaching 65 million tonnes by 2019, driven by increased capacity in China, the Middle East and the United States.
The expected rise in aluminum prices this year will stimulate the restart of some of the shutdown plants, as the consumption of aluminum products such as aluminum sheet is growing , corner, circle, square, etc.
While in China there are existing and new facilities that have been shut down by regulators but will be allowed to reopen after the 2017-18 winter season.
The rise in prices will be driven by higher production costs, especially rising energy prices will remain a constant challenge for aluminum smelters in the coming years.
Global aluminum production in the first eight months of 2017 increased 5.8% year-on-year to over 40 million tonnes, the Australian Government's Industry Department said.
This is driven by strong growth in China (7.7% YoY), other Asian countries (14% YoY) and South America (3% YoY), the report says.
Chinese aluminum producers tried to offset the inevitable winter production cuts due to environmental requirements approved by Beijing, increasing production in the first half of 2017 by 11% year-on-year to nearly 17 million tonnes, the report said.
However, global aluminum production is expected to decline 0.3% year-round in 2017 to 58 million tonnes, in line with a projected 4.3% decline in Chinese production to 30 million tonnes due to Beijing's demands to reduce air pollution.
Some production cuts in China will be offset by expected increases in other Asian countries (21%) and the Middle East (2.3%).
Analysts set aluminum production in China for 2018 at 38 million tonnes, 5.6% more than last year.
