Tootoo.com: Aluminum to favorable prospect in China

According to a metal analyst from tootoo.com, although the world's aluminum supply sees a surplus in 2008, in the medium term, aluminum will remain a favorable investment in China, due to power shortages in China and the abolishment of export tax rebates on aluminum.

Tootoo.com's also commented that, it is estimated that by 2009 China will become an Al-importing country, as power shortages will lead to the closing down of a part of the refining business.

It is estimated that China, the world's largest aluminum producer, will be shortfall in the supply of aluminum at the end of 2010, which  results in aluminum price and aluminum production capacity falling.

The analyst from tootoo.com said the increase in global aluminum inventories and the rapid decline in aluminum prices will make many energy-intensive smelting enterprises to fight for survival in the limited space of profit.

However, including China, India, Russia and Brazil, investment-driven demand for emerging economies and high energy costs will provide support for aluminum, moreover copper is more expensive than aluminum.

On the supply side, "power price upswing will urge producers to slow down production. With smelting enterprises current power supply contract expiring in the next few years in succession, if aluminum prices remain at the current low in Western Europe and North America, smelting plants

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.