The
expansion of production units in China in the western region is due to
lower power costs in the region. The other regions in China are still
struggling due to higher power and raw material costs and lower demand.
National Bureau of Statistics said that the total Aluminium production
was 1.73 million tonnes, up 11% from February 2012. The total production of Aluminium in Jan-Feb 13 was 3.51 million tonnes, down 15% from last year. The production of Aluminium in China is expected to reach 25 million tonnes in 2013 from earlier forecast of 24 million tonnes and a rise of 12.3% from 22.3 million tonnes in 2012.
LME Aluminium ended at $ 1910 per tonne on 28 March 2013, down 7.7% in a month. Weak Aluminium prices have forced major smelters to cut back their production barring those that have facilities in western China where the production costs are much lower. Indian Aluminium demand will take a hit from the fact that the automobile sales have come down to a 12 year low. The property markets is already suffering from high interest rates and with automobile consumption at more than decade low, Copper consumption can take a beating in the country.
Source by Commodity Insights
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