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China currently accounts for over half of the world¡¯s aluminum output and consumption, and as the aluminum surplus widens, it has caused a surge in exports and has distorted the supply-demand balance. According to the MetalMiner Annual Metal Outlook, Chinese exports are still up 22 percent compared to 2014 despite exports falling in recent months.
There has also been weaker demand for the metal as manufacturing, automobile and real estate activity in China continues downward ¡ª that means prices are likely to stay suppressed. According to the report, aluminum prices are expected to stay low into 2016, and based on market conditions, the firm expects three-month aluminum prices to average $1,550 per metric ton.
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