Aluminum Commodity Demand 2011 Affected Monetary Policy, Alumina Spot Price Forecast Increase

Commodity demand for aluminum in 2011 will be affected by monetary policy tightening by China which would ultimately affect the growth in manufacturing and industrial activities, according to NALCO CMD B L Bagra.

Addressing the 30th Annual General Meeting here, Mr Bagra said the industry experts had anticipated 2011 to be a year of uncertainty and volatile prices.

As metal commodity, aluminum prices come under pressure as production of the metal in China, the world?s top aluminum market was expected to grow at a whopping 24 per cent this year to around 20 million tonnes.

The aluminium price, the NALCO CMD said, might continue to react to macro-economic news, thereby averaging around USD 2300 to USD 2600 a tonne during 2011.

In 2011, alumina spot prices are forecast to increase by 12 per cent to average around USUSD 390 a tonne. World consumption of alumina will also rise, supported by the construction of new smelters in China, India and the Middle East.

The alumina market, Mr Bagra said, was expected to remain roughly in balance in 2012, with spot prices in the range of USD 350 to USD 370 a tonne, subject to changes in the LME aluminium price and the success of the index-based pricing.