(***** News) -- Aluminum demand data so far in 2011 has nudged...

(Kitco News) -- Aluminum demand data so far in 2011 has nudged the global market into deficit and is offering the basis for a ?steady grind higher? in prices over the coming months, say analysts with Barclays Capital. Global production has hit record highs, Barclays says. However, the bank also cites ?stunningly positive? aluminum demand, with global consumption growing 9% for the year to date, enough to leave the market balance in a mild deficit of 419,000 metric tons in the first half. ?One of the key qualities of the demand performance has been balance of strength between non-OECD and OECD regions,? Barclays says. ?While the improvements in Chinese (+7%) and Asian (+11%) demand have both been strong, demand indicators such as semis orders for North America (17%) and Europe (+8%) are also equally impressive.? The packaging, aerospace and electronic sectors have all been strong, as has auto but with moderated support in the second quarter due to supply-chain effects from the Japanese earthquake, Barclays says. The bank looks to average of $2,700 per ton by the fourth quarter.

By Allen Sykora of Kitco News; asy


http://www.kitco.com/reports/KitcoNewsMarketNuggets20110718.html