Survey: China to drive aluminum prices up

A survey by US investment bank Merrill Lynch concluded that global aluminum prices would rise rapidly in 2004 and 2005 on the back of increased consumption and smelter capacity. The survey predicted that aluminum prices would drop after the global alumina supply catches up with Chinese capacity in 2006. China consumed 18.7% and produced 19.7% of the world's aluminum in 2003. The report said that Chinese aluminum production would jump 19% to 6.6 million tons in 2004 and 12% to 7.4 million tons in 2005, adding that China should have enough smelting capacity before 2006 to meet production requirements for the next several years.