Alcoa CEO Says Asia, Mideast Driving Aluminum Demand (Update1) -Shanghai Metals Market

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Alcoa CEO Says Asia, Mideast Driving Aluminum Demand (Update1)

Industry News 10:31:14AM Jan 28, 2011 Source:SMM

Jan. 27 (Bloomberg) -- Alcoa Inc., the biggest U.S. aluminum producer, expects demand for the metal to double by 2020 driven by consumption in Asia, Brazil and the Middle East, according to Chief Executive Officer Klaus Kleinfeld.

"We see places like China continuing to lead with growth of 21 percent last year, 13 percent this year," Kleinfeld said in an interview in Davos, Switzerland. "We actually see that places like Southeast Asia, Brazil, Middle East are increasing the growth rate."

Alcoa expects average growth of about 6 percent a year until 2020, he said. "Demand is going to double."

Rising consumption of aluminum, used in products from beverage cans to aircraft, may see supply fall short of demand by 2012, HSBC Holdings Plc said in a note, while Tokyo-based research company Market Risk Advisory forecast last month that demand will surpass output by 300,000 metric tons in 2012, creating a global shortage for the first time in six years.

China, the biggest producer of the metal, will become a net importer of aluminum if the government continues its power conservation policy, Kleinfeld said. The country is limiting the output of power-intensive industries, including steel and aluminum, in some regions to meet energy-saving targets.

United Co. Rusal, the world's largest aluminum producer, said on Jan. 18 that global demand may rise 8 percent this year, with Chinese consumption likely to climb 12 percent.

Aluminum for delivery in three months rose 1.4 percent to $2,395 a ton in London at 9:51 a.m. local time.

 

Alcoa CEO Says Asia, Mideast Driving Aluminum Demand (Update1)

Industry News 10:31:14AM Jan 28, 2011 Source:SMM

Jan. 27 (Bloomberg) -- Alcoa Inc., the biggest U.S. aluminum producer, expects demand for the metal to double by 2020 driven by consumption in Asia, Brazil and the Middle East, according to Chief Executive Officer Klaus Kleinfeld.

"We see places like China continuing to lead with growth of 21 percent last year, 13 percent this year," Kleinfeld said in an interview in Davos, Switzerland. "We actually see that places like Southeast Asia, Brazil, Middle East are increasing the growth rate."

Alcoa expects average growth of about 6 percent a year until 2020, he said. "Demand is going to double."

Rising consumption of aluminum, used in products from beverage cans to aircraft, may see supply fall short of demand by 2012, HSBC Holdings Plc said in a note, while Tokyo-based research company Market Risk Advisory forecast last month that demand will surpass output by 300,000 metric tons in 2012, creating a global shortage for the first time in six years.

China, the biggest producer of the metal, will become a net importer of aluminum if the government continues its power conservation policy, Kleinfeld said. The country is limiting the output of power-intensive industries, including steel and aluminum, in some regions to meet energy-saving targets.

United Co. Rusal, the world's largest aluminum producer, said on Jan. 18 that global demand may rise 8 percent this year, with Chinese consumption likely to climb 12 percent.

Aluminum for delivery in three months rose 1.4 percent to $2,395 a ton in London at 9:51 a.m. local time.