Alcoa is the largest U.S. aluminium producer. After analyzing the situation on the world market, its experts have come to certain conclusions. So a reduction in Chinese production can significantly change the situation on a global scale. Specifically, it can create a «relative balance». Accordingly, the company changed its calculations concerning the abundance of this metal. It lowered its assessment according to international calculations.
Her opinion changed after China started mass production cuts. This Chinese policy is adopted in connection with the environmental situation. Contractile activities aimed at reducing environmental pollution. The opinion of the American company drawn up on the basis of actual and planned reductions. Initially, the forecasts for the end of 2017 read about oversupply in the Chinese market. Its volume had to be between 2.2 to 2.4 million tons. Now it is reduced to the range 1.8−2 million tons.
Upon achievement of such indicators it will be possible to observe balance in the world market. It will be from 300 thousand tonnes of deficit and up to 100 thousand tons of excess. It may have a positive impact on the overall picture. As for prices, in the opinion of Morgan Stanley to grow up. Banking experts increased in September its previous forecast of 5%. The change in forecasts is also associated with reductions in the Chinese industry. In case of unscheduled decrease in the Chinese market, the forecasts will adjust again. However, significant differences are not expected. The US is almost sure of the balance on the world market.