Aluminum Prices Expected to Rise as China's Demand Grows

NEW YORK--The Aluminum Industry has struggled over the past year as dropping prices have cut into companies' profits. Prices for the metal have dropped over 23% in the past year, but prices are predicted to rebound as China's aluminum demand continues to grow.
China currently makes up roughly 40% of the world's consumption of aluminum. According to Novelis Inc., the world's largest user of the metal, demand in China is expected to grow on average 8 to 10% a year for the next five years. 

"One would expect the demand in China and Asia to drive up the aluminum price, given the scarcity of aluminum that's available to the market," Philip Martens, CEO of Novelis Inc., said in an interview. "The economy in China, all things considered, we still see as solid and stable," Martens said. "Within China, the basic drivers of the use of aluminum are going to continue."
Alcoa recently reported income from continuing operations of $94 million, or $0.09 per share, in first quarter 2012, a $287 million improvement over fourth quarter 2011, led by strong productivity growth and improved market conditions. Excluding the impact of special items, income from continuing operations was $105 million, or $0.10 per share. Special items in first quarter 2012 included the negative impact of mark-to-market changes on certain energy contracts and restructuring charges primarily related to smelter curtailments.
Century Aluminum Company will report first quarter 2012 earnings on Wednesday, April 25th after the close of market trading.

Courtesy: http://www.marketwire.com