Shopping Cart

Aluminum Outlook 2020: Experts Call for Surplus in Years to Come

Investing News - As 2019 comes to a close, investors might be wondering what’s next for the aluminum outlook.

“We forecast the world ex-China market to move into surplus over the next few years. In the absence of a supply response, we project an uninspiring price outlook,” Shikvar said.

Wood Mackenzie forecasts an average annual London Metal Exchange (LME) aluminum price of US$1,752 per tonne next year.

Restarts in Canada and Brazil, expansion in Bahrain and the commissioning of SALCO’S 300,000 tonne greenfield project will move the market — excluding China — to a surplus of 700,000 tonnes.

“One could argue that it’s not that the ex-China producers are adding too much capacity, but simply that the demand outlook has deteriorated too much, too quickly to give producers a chance to assess their expansion plans,” Shikvar said.

According to Wood Mackenzie, the global demand picture continues to dampen.

“We estimate global demand to be flat this year followed by a tepid recovery at 2 percent in 2020,” Shikvar said.

Meanwhile, FocusEconomics analysts expect aluminum prices to rise slightly from current levels, largely thanks to healthy global demand.

“That said, an upturn in global supply — including the removal of an operational embargo on Alunorte in Brazil, the planned construction of a ‘green aluminum’ industrial park in Yunnan and the restart of Xinfa capacity in China — will restrain price increases,” states the firm in its report.

Continue reading...

How Coronavirus Poses New Risks To Latin Americ...
Older post
Zinc hardest hit as metals retreat on fears of ...
Newer post

This is Photoshop's version of Lorem Ipsum. Proin gravida nibh vel velit auctor aliquet. Aenean sollicitudin, lorem quis bibendum auctor, nisi elit consequat ipsum.

Morbi accumsan ipsum velit. Nam nec tellus a odio tincidunt auctora ornare odio. Sed non mauris vitae erat consequat auctor eu in elit. Class aptent taciti sociosqu ad litora torquent per conubia nostra. , per inceptos himenaeos. Mauris in erat justo. Nullam ac urna eu felis dapibus

This is a cookie agreement request — you can customize it or disable on the backoffice. Cookies help us to provide you the best experience using our website.

Client service


We're available by phone (877) 350-0771 every day from 9 am. - 9 p.m. ET.

HOURS: Monday - Friday 8AM - 5PM
Saturday - Sunday Online
Holidays Online

(877) 350-0771

1420 Kettner Blvd #100 San Diego, CA 92101


Credit Card: Visa, MasterCard, Maestro, American Express

Back To Top
Do you like any template? Apply its settings to your store — just select the template you like and press the «Apply» button of the desirable one. Templates can be switched at any time.
Applying a new template overrides the settings. Press «Copy» and paste it into any text file to save your current settings.