China’s primary aluminum output would rise 10.5% to 21.5 million tonnes this year as capacity grows, even as weak aluminium prices spurred some smelters to delay the start-up of new capacity in January, Reuters reported, citing a published by the trading arm of Aluminum Corporation of China (Chinalco, 601600.SHA, 2600.HKG), China’s top aluminum producer. Global production, including China, would rise 7% to 48.8 million tonnes in 2012 from 2011 as capacity in China, the Middle East and India increases though some plants may cut production. Li Dongguang, president of Chinalco’s trading arm said the firm expects world consumption of primary aluminum to rise 6.4% to 48 million tonnes in 2012, lower than its output prediction of 48.8 million tonnes. He added that the slow-down in Western economies may restrict demand, and exports of aluminum products from China and prices of benchmark three-month London Metal Exchange aluminum are expected to range between US$1,900 and US$2,600 a tonne this year. RUSAL (0486.HKG), the worlds largest producer, is expecting to cut production by 3.9 million tonnes in 2012.
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