US-based aluminum giant Alcoa expects aluminum demand to increase 7% to 49.4Mt in 2013, up 1% from the 6% growth experienced in 2012, according to CEO Klaus Kleinfeld.
The bump in global demand will be bolstered by an 11% expansion in demand from China, as well as strong growth from Brazil (3%), Russia (1%) and India (3%), Kleinfeld said during a conference call to discuss the company’s financial results.
The change in demand from North America and Europe should remain relatively similar to last year, with North America seeing a 4% increase in demand (equal to the 2012 growth figure) and European demand, which fell by 2% in 2012, declining by just 1% year-on-year in 2013.
Globally, the company is looking at growth in all of its end markets this year, Kleinfeld said.
As a result of the expected demand growth, Alcoa is projecting a 200,000t alumina deficit and a 535,000t aluminum surplus in 2013.
Given the size of these markets, however, Kleinfeld said that the figures show that “supply and demand is essentially balanced.”
The company is also predicting a recovery in LME prices, linked more to the global economic situation than to market fundamentals. “The LME price these days is very much trading on general economics…. it’s not the fundamentals,” he said.
Alcoa reported a net profit of USD 242M for the fourth quarter of 2012, compared to a USD 191M net loss in 4Q11.
