Chinese Steel Over Capacity Need Structural Adjustment - MIIT

LONDON, July 20 -- Analysts are calling for deficits in tin in 2010 and shrinking surpluses in copper, nickel, lead, zinc and aluminium.
&nbsp;&nbsp;&nbsp; Copper's market balance was seen at 400,000 tonnes in surplus in 2009 and 227,300 tonnes oversupplied in 2010, with a minority of forecasters calling for a market in deficit in 2010.
&nbsp;&nbsp;&nbsp; The surplus in aluminium in 2009 was seen between 746,000 tonnes and 2.5 million tonnes with the median forecast for 1.7 million tonnes, moderating to 695,100 tonnes in 2010.
&nbsp;&nbsp;&nbsp; Aluminium has been hard hit by the collapse in demand from the automotive and construction sectors, which have come under pressure during the financial crisis.
&nbsp;&nbsp;&nbsp; An overhang in production capacity, seen by some up towards 9 million tonnes or nearly 20% of world capacity could risk a surplus of 1.52 million tonnes in 2010 according to analysts at HSBC, who saw prices averaging USD 1,653 per tonne in 2010, USD 1 off the median of price predictions.
&nbsp;&nbsp;&nbsp; The median tin surplus of 5,000 tonnes in 2009 is seen flipping into a deficit of 1,500 tonnes in 2010. The zinc surplus is expected to moderate to just 12,000 tonnes in 2010 from 212,000 tonnes in 2009.
&nbsp;&nbsp;&nbsp; (Source: Reuters) 
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