World Primary Al Ingot Demand to Rise by 9.5% in 2008, Sumitomo

World primary aluminium ingot demand will increase by 9.5% to 41.31 million tonnes in 2008 from 2007, according to revised outlook by Sumitomo Corporation. The supply will increase by 9.3% to 41.695 million tonnes. The supply exceeds demand for 2 years in a row but the oversupply will be 385,000 tonnes, which is 800,000 tonnes less than original outlook. The firm expects the 3-month future price at London Metal Exchange could be US$ 2,800-3,700 per tonne for second half of the year. The firm expects the demand decreases in USA and Japan in 2008 from 2007. The demand will increase in Western Europe and Asia more than original outlook. The supply in China could slow down the growth resulting in just less than 15 million tonnes while the supply decreases in Africa and Oceania due to limited availability of electricity. The firm expects the LME 3-month future price is US$ 2,800-3,300 per tonne for July-September and US$ 2,800-3,700 for October-December. The firm expects the price could keep high level due to higher energy and electricity cost. The firm expects the price could drop to US$ 2,800-3,300 level in second half of 2009.