Global primary aluminium production has been trending up in 2011, and rose 5.8% year-on-year (y-o-y) in July. Higher production in relatively new aluminium-producing regions, such as the Gulf, and in Europe and the US—in response to growing consumption—is a key reason.
Also See | Aluminium In Steady State (PDF)
In Asia, China’s production was up by 12% y-o-y in July, showing demand continued to improve in 2011. Inventories with firms have shown a rising trend, though they fell in July. Inventory levels may become an overhang if demand turns weak.
Prices on the London Metal Exchange (LME) have come off their highs recently, chiefly due to worries about the economies of Europe and the US.
Shares of Indian aluminium companies have suffered as a result.