By Purchasing Staff -- Purchasing, 7/25/2005 2:00:00 AM
Primary aluminum sales prices may increase again next year because of expected demand growth in China, the world's second-largest user of the metal. So says analyst Dan Roling at Merrill Lynch & Co. who now sees a supply squeeze resulting in a 90¢/lb spot sales average in 2006, up from a projected 86¢/lb this year and an actual 78¢/lb in 2004. Declining global stockpiles will also bolster prices, according to Roling. Note: China expects its economy to expand 8% this year after growing 9.5% in 2004. That will cause the country's aluminum consumption to rise 14% this year to 6.8 million metric tons, after increasing 17% in 2004, analyst Wang Feihong with Beijing Antaike Information Development tells the Bloomberg News Service.
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