Sumitomo Corp Forecasts World Aluminium Supply Ease in 2007

Sumitomo Corporation forecasts world supply of primary aluminium ingot would become surplus against demand in 2007 for the first time in 2 years. The world demand is estimated to increase by 5% to 35.215 million tonnes in 2007 from 2006 and the supply increases by 6% to 35.345 million tonnes. The supply would exceed the demand by 130,000 tonnes thanks to more supply expansion than demand increase.Sumitomo Corp estimates world primary aluminium ingot demand would increase by 5.4% to 33.548 million tonnes in 2006 from 2005 and the supply increases by 4.5% to 33.348 million tonnes. The supply would shorten by 200,000 tonnes against the demand in 2006. Primary aluminium demand maintains brisk in the USA and seems to increase by 17% in China in 2006 from 2005 though the demand in China was originally estimated to increase by 12%. Aluminium refineries in Western Europe sustain the operation level and the output volume even though electric power cost is increasing for refining when international aluminium price stays high. Aluminium supply would also increase in China in 2006 from 2005. Totally world aluminium supply would become short by 200,000 tonnes against the demand, while originally estimated to shorten by 400,000 tonnes.The supply is likely to ease more in 2007 due to the increase of both supply and demand worldwide. The supply would turn to the increase in the USA and increases by more than 10% in China in 2007 from 2006. World total supply would increase in 2007 from 2006.