Aluminum giant Alcoa (AA.NYSE) said the phase-out of China’s stimulus policies would cut aluminum consumption growth in the country from 21% to 15% in 2011, Bloomberg reported. In particular, measures introduced to control speculation in the property market are expected to hold back growth; construction accounts for nearly 50% of first-end use of aluminum in China. The increase in the purchase tax on vehicles with engine displacements of 1.6 liters or less, which is expected to hurt growth in auto sales, will also affect aluminum consumption. Alcoa posted global net income of US$258 million in the fourth quarter of 2010, helped by rising prices of aluminum. The company posted a loss of US$277 million in the fourth quarter of 2009.
You must log in to post a comment.