Post News Network
Bhubaneswar, August 31: Aluminium pricing and demand is likely to be under pressure in the current year on the back of slowing Chinese economy, strengthening dollar along with high level of global inventory, the National Aluminum Company Ltd (NALCO) said in its annual report.
“Global demand appears to have entered a period of flux, with large variations seen in the off-take of different regions. Macro indicators suggest that Chinese economy has slowed significantly. Slowing demand from the construction sector, which accounts for nearly one-third of total demand for aluminium in China is likely to have a significant impact on Chinese demand,” the report said. It, however, added that north-American demand is expected to be high in 2015, considering the improving economy and increasing intensity of usage of aluminium in the transport sector.
On domestic demand, the report noted that demand from electrical sector is likely to remain robust in 2015. “Demand growth is likely to be the highest in transport, building and construction sectors,” it added. On pricing environment, the annual report said that bearish commodity prices, export of Chinese surplus stocks and a strong dollar are expected to put pressure on aluminium prices in 2015.
“The LME (London Metal Exchange) cash settlement price average for 2014 was $1,866 and the average prices are expected to remain at similar levels during 2015,” it said. It, however, noted that opportunity continued to exist in the domestic market as per capita consumption of aluminium in India is among the lowest in the world.
