Rising aluminium prices in China have prompted smelter restarts just as one equity group expects demand growth to slow. The price of aluminium in China has risen recently, largely on production cuts starting in December. The price rise has encouraged producers to restart idled smelters. That increase does not bode well for the oversupplied global market, but many company and analyst outlooks have expected demand growth to lend some support. Now Morningstar equity analysts in their April 2016 Basic Materials Observer forecast that global aluminium demand growth will decelerate significantly. The equity group blames persistent overcapacity and sustained slow demand growth from China, which accounts for half of global aluminium demand.
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