China Aluminum Output Growth To Cease In '09 -Antaike Analyst

Chinese aluminum production is expected to see no growth in 2009, a top government consultant said Wednesday.

Annual aluminum capacity is expected to reach 3.7 million metric tons this year, but after years of capacity expansion, the growth trend is expected to stop next year, said Wang Feihong, principal analyst for consultancy Antaike, at the China Mining conference.

"Zero growth has never before been seen," he said.

Aluminum is expected to trade below the cost of production through 2009 as a slowing Chinese economy will hurt demand, he said.

"China pulls the global growth in aluminum along," Wang said. "Without China, global aluminum growth was already low. Global demand is even lower now, and we expect to see more production cuts in other countries next year."

China accounts for some 60% of global aluminum consumption, Wang said.

At 0917 GMT three-month aluminum on the London Metal Exchange was at $1,932 a metric ton, down $13 since Tuesday's kerb.

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