Shares of metal companies soared in early trading on Thursday, after US firm Alcoa predicted a global deficit for both aluminium and alumina in 2018.
“Due to delays in projects to expand smelters in China, the company expects the global aluminium deficit to grow to between 600 thousand metric tons and 1 million metric tons, up from last quarter’s deficit estimate of between 300 thousand metric tons and 700 thousand metric tons. Global aluminium demand growth is projected between 4.25 to 5.25%,” Alcoa said in its first quarter earnings release.
In alumina, Alcoa projects a global deficit between 300 thousand metric tons and 1.1 million metric tons for full year 2018, primarily due to supply disruptions in the Atlantic region. This projection compares to last quarter’s expectations of a balanced market.
The global market for bauxite is expected to remain in balance. Considerable uncertainty remains in the global supply chain due to multiple trade actions, sanctions, and supply disruptions, it added.
Vedanta Limited was trading up nearly 3% at ₹. 299.40, Hindalco Industries was trading up 5% at ₹. 253.70, National Aluminimum Co was trading up over 5% at ₹84.25, Hind Aluminium Industries rose 2.43% at ₹. 124.45 on BSE.
