Global Aluminum prices may increase during the second half of 2018
LONDON (Scrap Register): During the second half of the financial year 2018, on the back of good demand-supply balance drives and the sentiment on aluminium prices, the global prices of Aluminum has increased by over 10 percent in the past month.
During the past month, the International prices of aluminium, quoted at the London Metal Exchange (LME) has seen a crisp increase by over 10 percent, after posting an increase of four per cent in the preceding six months.
“Lower production in China is likely to push the country into a marginal deficit in 2017, and it is likely to widen further in 2018, if the authorities remain committed to the regulations. This in turn would lead to a large widening deficit globally, as 2017 deficit is likely to be over two per cent of the global consumption,” ICRA Senior Vice President, Jayanya Roy stated.
The rest of the world has remained in deficit in the past few years, meeting the demand from Chinese exports, and no new large-scale capacity is currently in the pipeline.
A possibility of prices hike during the second half of the current calendar year was predicted by ICRA, and its last two quarterly research reports on the primary non-ferrous metal industry too had been positive on aluminum prices.