According to the report from Australian Bureau of Agricultural Resource and Economics, world Aluminum prices are expected to average higher in 2011 as per. The report mentions that the demand for Aluminum will be coming from developing economies. Strong consumption growth in China is expected to continue. Though the price increases will be limited due to strong production growth and high aluminum inventories.
OECD economies continued to restock Aluminum in 2010 the exercise is expected to be over in 2011. Aluminum prices are forecast to average 7% higher in 2011 at USD 2315 per tonne.
Aluminum consumption is expected to show a decent growth in 2011 and 2010. In 2010, the consumption is expected to increase by 14% to 39.6 million tonnes. OECD economies will be given credit for half of this growth. In 2011 the growth is expected to moderate to 9% to 43.3 million tonnes. Construction and manufacturing activity in China will lead the growth.
World Aluminum production is expected to increase by 10% to 40.7 million tonnes in 2010. Despite the measures from China to close Aluminum capacity to save electricity the Chinese markets are likely to grow by 25% to 16 million tonnes in 2010. In 2011, world aluminum production is forecast to increase by 8 per cent to 43.8 million tonnes, as large capacity additions in China, India and the Middle East will be completed or approach full capacity.