Aluminum price suppressed due to oversupply amid slowing recovered economy
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Update time : 2020-05-18 20:46:20
United Company RUSAL (RUSAL) said that before 2021 the aluminum market was expected to remain slow without recovery or the recovery will appear in 2022 or 2023, and the global economic recovery will be in a U shape.
In order to keep job positions, most of the aluminum smelters will keep the same capacity as that before the epidemic, and it will cause aluminum supply to excess 2-4 million tons per year. However, the market will be in this situation for a long time, and the aluminum manufacturers will cut the production eventually.
It was estimated that the aluminum demand from Russia will decline by 30% in maximum, and the main reason will be the situation of COVID-19 and the impact on economic.
Except for the negative impact on economic, the crude oil price fall was another big impact on Russia.
RUSAL mentioned that the statistics at the beginning of this year showed that the global economy will rebound this year; however, after the outbreak of the COVID-19 epidemic, the whole economy sharply fell and the aluminum market deteriorated in the first half of this year.
