Alcoa Expects Aluminum Demand To Grow In 2019

- Jan 18, 2019-

The global aluminum market shortage will expand. Alcoa Corp. released a performance report predicting that the global aluminum market shortage will continue to expand to 2.1 million tons in 2019, compared with a shortage of 1.7 million tons in 2018. This sign indicates that aluminum consumption will continue to grow in the event of a trade war between the two major aluminum consumers. Alcoa's chief financial officer, Bill Oplinger, said at the end of November 2018 that trade frictions are weakening the short-term outlook for global aluminum demand, with aluminum prices falling by nearly a fifth in 2018. The company expects consumption to increase by 3% to 4% in 2019 and 4% in 2018. It is expected that the alumina market will shift from a shortage to an excess in 2019, mainly driven by China. It is expected that the expansion of China's smelters will exceed demand growth. Harvey said, “As the market may remain active in 2019, we will focus on areas we can control to continue to improve our operations.”