World Aluminium Demand to Rise by 9.3% in 2007, Sumitomo Corp.

World aluminium demand will increase by 9.3% to 40.985 million tonnes in 2008 from 2007, according to outlook by Sumitomo Corporation. The firm expects the supply will increase by 10.2% to 42.17 million tonnes and the supply is 1.185 million tonnes higher than the demand. With the supply condition, the firm expects the price is in US$ 2,200-2,600 per tonne at 3-month future of London Metal Exchange. The firm expects the demand decreases in USA and Japan in 2008 from 2007 due to financial squeeze and very slow building activity. The firm expects the Chinese demand increase by 25% while the demand increases in Europe and other Asian countries. The firm expects the Chinese supply exceeds 15 million tonnes in 2008, which represents more than one third of world supply. The supply is expected to increase in Middle East and former Soviet Union. The firm expects the LME future price is US$ 2,300-2,600 per tonne for January-March and April-June while the price is US$ 2,200-2,500 in July-September and October-December.