Lower Chinese production is set to fuel supply deficits in Asian aluminium markets in 2020, according to UC Rusal marketing head Roman Andryushin.
During 2019, aluminium supply in Asia was not growing due to falling primary aluminium output in China, and this is set to continue this year, Andryushin told Fastmarkets in an interview.
"Several disruptions and continued reallocation of capacities still put the Chinese market in a deficit," he said.
Andryushin's comments come as the three-month aluminium price on the London Metal Exchange starts the year strongly, hitting a six-month high of $1,832 per tonne on January 6, but regional physical premiums - indicators of market balance - remain low.
The last time the three-month aluminium price traded above $1,832 per tonne was on July 19, 2019, when it was at $1,847 per tonne.