Chinese aluminium industry with its increasing output is threatening the recovery in the world market made possible by a recovery in the US markets and the Federal Reserve's step to initiate interest rate cuts. The American recovery, slight though in quantum, has led to a marginal decrease in the level of aluminium stocks. According to the International Aluminium Institute (IAI), worldwide aluminium inventories totalled 2.8 mt at the end of September, compared to the 2.8 mt a year earlier and 3.1 mt at the end of September '01. China is increasingly being viewed as a major producer, with expansions there already overtaking targets and capacity seen reaching close to the 5 mt this year. This is slightly more than the primary aluminium capacity of the world's largest, Alcoa at 4.5 mt.
NSTL
