Aluminium prices may fall by 10%
The prices of Aluminium are likely to fall due to rising global supplies led by China, according to CRU International Ltd. Prices of three-month futures on the London Metal Exchange may average 10% lower this year to $2,360 a metric tonne.
However, the increasing electricity and materials costs will limit the decline, US Economy will curb demand as global supply increases. This will result in reduced profit margins for the producers who are facing rising costs. Global supplies of aluminium, used in plane parts and packaging, are likely to rise 10% to 42 million tonne this year, resulting in a surplus of 1.5 million tonne, Most of the new supply is coming from China, Electricity, which accounts for 45% of aluminium production costs globally, is twice as costly in China, according to CRU.
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