Chinese 2013 aluminum output may beat earlier forecast, says Beijing analyst

Metal Recycling News  |  2013-03-09 06:47:47   |   By

Chinese domestic aluminum production may beat the earlier forecast, according to analyst at the Beijing state non ferrous metals information division. The aluminum output is now estimated to touch 25 million tonnes in 2013, higher than the earlier forecast of 24 million tonnes.

BEIJING (Scrap Monster) : Chinese domestic aluminum production may beat the earlier forecast, according to analyst at the Beijing state non ferrous metals information division. The aluminum output is now estimated to touch 25 million tonnes in 2013, higher than the earlier forecast of 24 million tonnes.

The revised output forecast for 2013 is 12.1% higher than the estimated forecast of the previous year. The estimated output for the year 2012 was 22.3 million tonnes. The actual domestic production figures for 2012 are due to be released later this month.

Despite prevailing weak domestic aluminum prices and some resulting smelter cutbacks in recent months, China's output will rise mainly due to added capacity in the western regions of the country during the year.

According to the analyst, the reports that certain smelters are going ahead with production cut are not likely to badly affect the net output. The number of such smelters is only a few, whose output can be easily compensated by output from the new capacities.

 

Many companies have turned to investing in the western regions of China in recent years. The availability of cheaper power and the richness of resources in the region continue to remain as the favorable elements for new investors.