China Secondary Al Alloy Output to Rise by 6.7% in 2011, Antaike

Chinese secondary alloyed aluminium output will increase by 6.7% to 5.17 million tonnes in 2011 from 2010, according to Beijing Antaike Information Development. The growth slows due to slower domestic demand growth. Antaike expects Chinese government’s fiscal and financial policy impacts on the demand under higher inflation and severe power availability.

Chinese alloyed aluminium output increased by 14.4% to 4.85 million tonnes in 2010 from 2009, according to Antaike. The demand increased when Chinese automobile output increased by 32.4% to 18.26 million units and the motorcycle output increased by 5% to 26.69 million units. However, Antaike sees the situation is different in 2011 when Chinese automobile output slows.

Chinese automobile output increased only by 5.1% to 6.43 million units in January-April from same period of 2010. The motorcycle output decreased by 7.5% to 8.46 million units. Antaike expects Chinese aluminium alloy demand could be severe in the second half of 2011.

Chinese alloyed aluminium export increased by 47% to 207,770 tonnes in January-April from same period of 2010. The growth rate is much lower than 2010 level due to slower Japanese demand after the major earthquake.