Aluminum Reuters news Oslo December 17, one of the world's major aluminum producers - Norsk Hydro (Norsk Hydro) director, told reporters on Thursday, prompting high-cost primary aluminum prices fell manufacturer cut, or make the market next year improve the supply and demand situation, and possible supply shortages in 2017.
Since 2011, the London Metal Exchange (LME) three-month aluminum price nearly cut, and last month hit 1,432 dollars per tonne of six and a half low, due to slowdown in Chinese economic growth continued to dampen demand.
Hydro CEO Svein Richard Brandtzaeg said in a telephone interview: "Adjusting the demand may come more quickly than expected, the price is too low, serious injuries to high-end of the cost curve."
Aluminum is widely used in construction, packaging, automotive manufacturing to aircraft, Hydro forecasts that aluminum demand next year will increase by 4-5% average annual increase in demand over the next 10 years will be 3-4%.
Brandtzaeg said the annual global production of nearly 60 million tons of aluminum, the market oversupply 100-200 million tons, stocks continued to increase in aluminum prices dragged down.
He declined to predict future prices, but said the market supply and demand pattern is about to change, because the high-cost producers are forced to stop.
Last week, the China Nonferrous Metals Industry Association issued a press release said that 14 Chinese aluminum prices this year has been cut a total of 4.41 million tons, the annual production will reach about 4.91 million tons, by the end of production capacity will increase by at least 500,000 tons.
Brandtzaeg said: "Close to initiate a natural capacity to adjust, our analysis shows that the market will tend to normalize patterns of supply and demand in 2016 than this year we will improve on this point quite sure.."
He added: "If the rebalancing process continued, and for some years after 2017, the aluminum market will be in short supply, but these are based on the assumption that the refinery closed.."