LONDON, July 25 -- Aluminum producer Rio Tinto Alcan said Monday it remains cautious about the short term outlook for aluminum although demand should continue rising in the long term and contribute to a doubling of the company's profit margin.
"We remain cautious of the short term outlook," for aluminum, said Jacynthe Cote, chief executive of Rio Tinto Alcan, a division of Anglo-Australian mining titan Rio Tinto PLC (RIO), in a presentation.
The "physical market remains tight but inventories remain at high levels," she added.
Nevertheless, urbanization and development in the BRIC countries continue help drive long term aluminum demand and boost currently low levels of per capita aluminum consumption globally.
There's "still a lot to come for aluminum," Cote said.
Global aluminum supply is forecast to rise to 55 million tons in 2015 from an estimated 45 million tons in 2011 and 32 million tons in 2005, according to Rio Tinto Alcan's presentation.
China, the world's largest producer of aluminum, is forecast to increase its aluminum output 34% to 25.3 million tons in 2015 from 2011, and will account for 46% of global production, up from an estimated 42% in 2011.