Tootoo.com's also commented that, it is estimated that by 2009 China will become an Al-importing country, as power shortages will lead to the closing down of a part of the refining business.
It is estimated that China, the world's largest aluminum producer ,will be shortfall in the supply of aluminum at the end of 2010, which results in aluminum price and aluminum production capacity falling.
The analyst from tootoo.com said the increase in global aluminum inventories and the rapid decline in aluminum prices will make many energy-intensive smelting enterprises to fight for survival in the limited space of profit.
However, including China, India, Russia and Brazil, investment-driven demand for emerging economies and high energy costs will provide support for aluminum, moreover copper is more expensive than aluminum.
On the supply side, "power price upswing will urge producers to slow down production. With smelting enterprises current power supply contract expiring in the next few years in succession, if aluminum prices remain at the current low in Western Europe and North America, smelting plants will be a difficult situation.
