Alcoa CEO Expects Global Aluminum Demand to Double in the Next Decade

According to news from New York on May 16, Klaus Kleinfeld, chief executive of Alcoa, said on Monday that aluminum prices are expected to continue to climb and that aluminum demand may double in the next decade. The CEO of the largest aluminum producer in the United States also said in an interview that although the aluminum market is tight and demand exceeds supply, Alcoa is not planning to restart additional US smelters soon. Kleinfeld said: "The overall price trend is clearly rising, the reason is simple, demand is increasing."

Last week, Russia’s UC RUSAL, the world’s largest aluminum producer, said that it expects metal prices to rebound after the recent decline, due to strong demand from China. On Monday, Kleinfeld refused to predict the price of aluminum, but pointed out that the price has increased from about 1,100 US dollars per ton in 2009 to 2,500-2,600 dollars today. He said he believes that the current market aluminum price range is reasonable.

Goldman Sachs released its report on May 13 and raised its aluminum price forecast for three months from 2,200 U.S. dollars to 2,700 U.S. dollars, which is supported by the cost and rebounded from Western manufacturing activity in the six months before the end of March. . Kleinfeld said Alcoa still expects global aluminum demand to increase by 12% this year and double in the next decade, as customers such as automotive and aircraft manufacturers will use more aluminum to produce products. When asked about Alcoa's order book, Kleinfel said: “The demand in all end markets is increasing, except for the US and European construction industries.” Asked whether the company will resume more US smelting capacity that has been idle since the economic downturn. At the time, he pointed out that Alcoa recently restarted a smelter in New York and two factories in Washington State. "In addition, we do not plan to restart the US factory soon."