World aluminum consumption will grow 6 percent this year and through 2015, according to United Co. Rusal, the world’s largest producer of the metal.
Global aluminum consumption will reach 50 million metric tons in 2013, the Moscow-based company said in its first-half results statement today. Growth will be driven by demand in China, where it’s expected to rise 9.5 percent, Asia excluding China, with a rise of 6 percent, India with an increase of 6 percent, and North America which is seen advancing 5 percent, according to Rusal.
China’s consumption will be spurred on by an increase in car production, infrastructure investments and home appliance purchases in rural areas under a stimulus program, Roman Andryushin, chief operating officer of Rusal’s marketing unit, said at a teleconference.
“We are reconfirming the consumption growth of nearly 6 percent annually this year and through 2015, at least,” he said in a presentation today.
U.S. primary aluminum demand will be stronger in the second-half of the year due to an increase in housing starts, and in the automotive and construction industries, Andryushin said.
A Bloomberg Industries survey of announced capacity cuts identifies as much as 3.2 million tons of capacity that may be curtailed by the end of 2014. Rusal plans to shutter 357,000 tons of uneconomic capacity this year, accelerating aluminum output cuts in the second half, according to the company.
Rising global consumption and falling capacity should lead to a “balanced” market in 2013, Andryushin said.
Aluminum for delivery in three months dropped 1.3 percent to $1,919.25 a ton on the London Metal Exchange by 3:40 p.m. The metal has lost 7.4 percent this year.