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China is increasing its aluminum smelting capacity

According to data published in the report of non-ferrous metals Industry Association of Henan, in 2015 China will increase aluminum smelting capacity. According to preliminary estimates of the volume of smelting of aluminum to increase by 7% to 31 million. Tons versus produced in 2014, 29 million. Tons. Working aluminum capacity in 2015 will be about 58 million. Tons. The report also specified to balance supply and demand on the alumina when the import amount level 5 Mill. T. China plans the introduction of new production capacity of aluminum production in 2015 at the level of 3.8 mln. Tons. Of these, 1.5−2 mln. Tons is expected to enter with the last days of March to early June 2015.

Specialists of the National Bureau of Statistics estimated the volume of production in the PRC refined aluminum in 2014 within 24.5 million. Tons. According to preliminary calculations, by 2015 this figure will increase to 6 or 7%. If China's economy will continue to weaken, for aluminum in the domestic market demand in 2015 will be reduced accordingly. However, the construction sector in the new year is able to stabilize the demand for aluminum, given the growth of the construction and favorable conditions of monetary policy. Accordingly, the increase and the volume of metal implement. Also, experts believe that in the light metal demand from the automotive and energy industries will increase in comparison with 2014 year.

Analysts believe that the price of aluminum on the LME in the first quarter of 2015 will increase. However, Japanese consumers are rumored to increase the volume of purchases. Japanese manufacturing companies in 2014 increased the amount of aluminum purchases. For 10 months the volume of imports of the metal rose by 15%, which amounted to 1.7 mln. Tons. During the same period, the global metal consumption increased by 5.6% compared to the same period last year. Aluminium production in the world increased by 3.5% in 2014, in 2015 this trend will continue. At the same time the demand will increase at a rate that will ensure increase in the deficit. At the same time, leaders of aluminum producers, Alcoa and Rusal, have reduced their own production facilities. Under assumptions of experts «Marubeni Corp» in the new year on a lightweight metal demand will increase na387 000 tonnes. A year later, the demand will exceed production by 872 tons.

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