China is likely to be a net importer of aluminum in “some quarters” of 2012 after drawing down heavily on domestic stocks this year, Reuters reported quoting Maxim Sokov, director for strategy at RUSAL (0486.HKG), the world’s largest aluminum producer. Chinese aluminum inventories have plunged since July, said Sokov: “Thus far, China has not become a net importer of aluminum, but only [achieved this] by reducing stocks on the Shanghai exchange. This is already a serious signal that we could see Chinese aluminum imports at the end of this year or the start of next year.” He also estimated that Chinese demand could boost aluminum prices to US$2,500-US$2,600 per ton by the end of 2011, provided there are no significant macroeconomic changes. Sokov added that RUSAL may purchase energy assets from RusHydro (HYDR.MM), a state-owned hydropower giant that the government is seeking to partially privatize.
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