Despite softer demand in China, global demand remains healthy

摘要

The Chinese aluminium market has experienced a seasonal slowdown since November 2013, however, demand still saw a double digit y-o-y expansion in Q4 2013. Nevertheless, supply continues to outstrip demand, which will push China into a large market surplus in Q1 2014. While the demand outlook for China looks solid, risks remain. Notably, high debt levels at some companies and many local governments may come back to bite. Indeed, the majority of Chinese semis producers have seen their profits squeezed in the overcrowded market. Demand in India disappointed last year and conditions remain muted. In Japan, consumption was very weak in 2013, but there are hopes that these falls can be halted this year.