IAI: Aluminum Deficit to Swing to Surplus This Year

SEATTLE (Scrap Monster): The latest market update provided by the International Aluminum Institute (IAI) suggests that the global aluminum market continues to remain tight. The market is likely to sitch from deficit to surplus later during this year.

According to IAI, the global aluminum production touched its highest level, totalling 5.74 million metric tons during the month of May this year. When compared with the same month a year before, the production was up by almost 6%. The market recorded deficit of 588,000 tons during the year-to-date period.

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The market was hit badly by pandemic crisis during the previous year. However, the global aluminum smelters witnessed nearly normal operations during the initial five-month period this year, thus resulting in a resilient output. However, consumption levels continued to remain affected, IAI noted.

The LME inventory saw addition of 457,000 tons, mainly in Malaysia. Also, SHFE stocks were up by 131,000 tons at the end of the previous month, in comparison with end-2020 levels.

From a fundamental perspective, the global aluminum output is poised to increase further, thus offsetting rising demand. Hence, the aluminum market deficit is likely to swing to surplus towards the end of 2021.