NewswireToday - /newswire/ -
Delhi, New Delhi, India, 2007/05/10 - With a 37.6% rise in the production in March ‘07, Chinese aluminium industry is showing unparalleled growth. Strong domestic demand, eased power-supply, and comparatively low prices of alumina remain the major contributor in this growth.
In its recent report on “China Non-Ferrous Industry Analysis” RNCOS has estimated that China’s Alumina production will likely grow 46% to reach 19.27 Million Tons in the year 2007, as compared to 13.2 Million Tons last year (2006).
Production of Aluminium increased 37.6% to reach 963,000 Tons in March 2007, assisting the Q1’s figure to increase 36.6% and reach 2.771 Million Tons supported by strong domestic demand, eased power-supply, and comparatively low prices of alumina, as per the statistics revealed by the National Bureau of Statistics on April 19, 2007.
Alumina production in China grew 53.7% to surpass 4.27 Million Tons in the 1Q’ 07 owing to a countrywide capacity expansion. However, the production of alumina in March ’07 grew 65.30% YOY to reach 1.658 Million Tons, representing a 24.36% up from February this year. Huge shift to domestic production of alumina, following the rationalization of the industry and improved power supply, is causing trade imbalances since import needs are crumbled.
In January this year, 929,600 Tons of primary aluminium was produced in China, which represented a 34.7% increase from same period a year ago (in 2006), said CNMIA (China Nonferrous Metals Industry Association), as reported by RESOURCE INVESTOR on March 9, 2007. “We expect aluminium futures to pick up in the future, after staying flat for almost 10 months on the back of the growing GDP," as per Shao Jialin - analyst from Miracle China Futures.
Exports of aluminium products rose by more than 100% in the first two months of this year. However, this represents just a diminutive percentage of overall output, implying increased domestic consumption. China has now become the 2nd largest user of aluminium in the world. Its rapid economic growth fuels the demand for the metal in construction, home appliances and cars.
As per the RNCOS report on “China Non-Ferrous Industry Analysis”, Aluminium industry is facing a serious glut in China and the industry is gradually concentrated with numerous companies lacking on the economic scale and running at low-efficiency. Aluminium production in China is expected to reach 11.5 Million Tons by the end of 2007, representing a growth of 25% YOY over the last year (2006).”
This report also addresses some interesting issues for today’s Global business environment, such as the impact of Chinese non-ferrous industry on the global non-ferrous industry, opportunities and challenges in the China non-ferrous industry, demand-supply balance for major metals in China non-ferrous industry, etc.
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RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of industry experts who analyze data collected from credible sources. They provide industry insights and analysis that helps corporations to take timely and accurate business decision in today's globally competitive environment.