Aluminum consumption may hit record high in 2016

The world's leading aluminum producer Alcoa believes that aluminum consumption should reach a record level this year. The company predicts that global aluminum consumption will grow 6 percent in 2016. Despite reports of weak economic data coming from China, the company expects. that the demand for aluminum in this country will grow by more than 6 percent. Meanwhile, demand for aluminum in the rest of the world is likely to rise by 4 percent, the company said.

The company maintains a bullish outlook for global aluminum supply and demand throughout 2016. In fact, Alcoa has raised its aluminum deficit forecast from its previous estimates. A forecast released earlier in November 2015 projected a global aluminum deficit of 360,000 tons. However, the currently revised forecast deficit has increased to 1.2 million tons. The company expects huge growth in demand from aerospace applications. The demand for aluminum products in this sector may grow by 8-9 percent. More aluminum will also be needed for the automotive sector, with growth likely to be 1 to 4 percent during 2016.

Alcoa expects 4.4 million tonnes of additional production from new projects or relaunched old ones during the year. At the same time, capacity is expected to be cut by 3.2 million tonnes due to falling metal prices. The future of the aluminum market is largely dependent on China, as the country will account for more than half of all global consumption during 2016. At the same time, China was previously going to implement all the planned reductions. A recovery in aluminum prices could force companies to delay production cuts. In addition, further devaluation of the Chinese currency could bode well for the country's aluminum exporters.

Alcoa is the world's leading primary aluminum producer and the largest bauxite and alumina miner. In addition, it develops the modern aluminum industry, and Alcoa's innovations have been major milestones in the aerospace, automotive, packaging and construction industries, consumer electronics and other industrial sectors over the past 125 years.