BLBG:China’s Aluminum Demand to Grow at 8-10%, Novelis Says
China’s aluminum demand is expected to grow at 8 to 10 percent annually on average for the next five years, supported by use in beverage cans and automotive sheets, according to Novelis Inc., the world’s largest user.
The company is “very bullish” on a range of aluminum usage, Philip Martens, chief executive officer, said in an interview today in Changzhou city, Jiangsu province. Novelis said it will invest $100 million to build its first automotive sheet manufacturing plant in China in the city with an annual capacity of 120,000 metric tons.
The nation, which accounts for about 40 percent of global consumption, is likely to see a slowdown in growth. China’s gross domestic product may have gained 8.4 percent in the first quarter from a year ago, according to the median estimate of 38 economists surveyed by Bloomberg. That compares with 8.9 percent in the fourth quarter, which was the slowest in 10 quarters. The metal, used in construction, beverage cans, electronics and the automotive sector, has advanced 3 percent this year in London.
“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,” he said.
The Atlanta, Georgia-based company produces 19 percent of the world’s flat-rolled aluminum products, and turns aluminum into products for Coca-Cola Co. and Ford Motor Co.
Three-month aluminum on the London Metal Exchange climbed 0.7 percent to $2,079.75 a ton at 12:35 p.m. in Shanghai. Alcoa Inc., the largest U.S. producer, reported an unexpected first- quarter profit after orders rose and it closed higher-cost smelting capacity.
To contact Bloomberg News staff for this story: Helen Sun in Shanghai at hsun30@bloomberg.net
To contact the editor responsible for this story: Jarrett Banks at jbanks15@bloomberg.net
