The world aluminium market is expected to turn from deficit to surplus next year, as expansion in global supply will likely outpace growth in demand, a unit of Japanese trading firm Mitsubishi Corp said on Monday.
A supply surplus of 280,000 tonnes is forecast for 2007, against an estimated shortage of 285,000 tonnes for this year, Mitsubishi Shoji Light Metal Sales Corp, an aluminium sales subsidiary of the trading company, said in a report.
Global supply of primary aluminium is expected to rise 6.4 percent year-on-year to 36.2 million tonnes in 2007, while global demand is forecast to grow 4.7 percent to 35.9 million tonnes.
China, the world's largest producer and consumer of the light metal, will remain a net aluminium exporter in 2007. Mitsubishi expects Chinese supply of primary aluminium will expand 12 percent year-on-year to 10.5 million tonnes, thanks to a sharp growth in local output of alumina - raw material used to produce aluminium - as well as a lack of power supply problems. As a result, a surplus in the Chinese aluminium market will widen to 859,000 tonnes in 2007 from 747,000 tonnes this year.