My Steel predicted that in 2022 aluminum supply shortage would be 340,000 tons, and in 2023 it will have an oversupply of 580,000 tons in China.
Aluminum Demand:
China’s aluminum demand remained low in 2022. A low level of demand is associated with less demand from the construction sector due to Covid control measures. Mysteel forecasted that it would be 1.6% in 2022, and less demand will be covered by electric vehicles and the solar energy sector demand. Aluminum demand may increase to 2.24%.
Aluminum Supply:
China’s aluminum supply remained low in 2022. Electricity shortage in the third quarter of 2022 and shutdown of the mills due to covid restrictions. Production cuts in Southwest China caused a fall in output and metal imports.
In 2023, aluminum production will make a record. Many shut-downed mills may resume production, and new mills may enter the market. 80% of production will come from the again startup of the firms.
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