Aluminium has become a rare metal

The participants of the market expect a deficit.

This year the world aluminium market will face a deficit – by various assessments the lack of metal will make up 61 thousand tons – 1.5 mln tons. When the largest producers, including UC Rusal, shutdown their ineffective capacities and the demand was growing, the aluminium prices on the LME rose by 20% by May. According to experts, the trend will go on: the companies won’t launch new capacities expecting a further price rise.

This year for the first time since 2006 the world aluminium market will face a deficit, Sumitomo Corp forecasts. According to its assessments, the deficit will make up about 61 thousand tons compared to the surplus of 580 thousand tons in 2013. It is explained by the reduction of capacities and the demand growth from the car manufacturers. Sumitomo expects the deficit to grow to 493 thousand tons in 2015. The expectations of producers are even better. The first deputy CEO of Rusal, V. Soloviev, in July forecast the world deficit (except China) in 2014 at the level of 1.5 mln tons. Yesterday the company added that the deficit stage will be stable, there are almost no new aluminium projects, the shutdown capacities are not planned to be relaunched. According to Alcoa, the metal deficit will make up about 930 thousand tons.