Oversupply of World Primary Aluminium in 2007, Mitsubishi Corp.

World primary aluminium market will turn into oversupply in 2007 for the first time in 2 years, according to Mitsubishi Corporation. The firm expects the demand will increase by 6.4% to 36.652 million tonnes while the supply will increase by 7.9% to 36.903 million tonnes. The supply is 251,000 tonnes more than the demand when the supply increases more than smaller increase of demand. The firm expects the demand will increase in every area in 2007 from previous year except for North America, in which the demand decreases by 1.3%. In the largest consuming country of China, the demand will reach 10 million tonnes for the first time. The supply in North America will increase in 2007 from 2006. The Chinese supply will increase to 11 million tonnes. The firm expects 3-month aluminium ingot price will be US$ 2,000-3,000 per tonne at London Metal Exchange in 2007. The firm expects the price decreases under oversupply though the price is supported by higher export tariff by Chinese government.