Alcan: World Aluminum Mkt In 200,000 Tons Surplus In '07

LONDON --The world primary aluminum market will show a small surplus of 200,000 metric tons in 2007, Canada's Alcan Inc. said Wednesday (AL).

This leaves the market close to balance, after a deficit of 160,000 tons in 2006, Alcan added.

"This would represent about 0.5% of estimated total world supply in 2007," Alcan said in a statement accompanying its fourth quarter results. "Inventories, as expressed in weeks of shipments, are expected to remain at historically low levels of about five and a half weeks," Alcan added.

For 2007, Alcan said world primary aluminum consumption is forecast to increase by around 6.7%, more or less unchanged from 6.8% in 2006. Production from new capacity and restarts is expected to increase world supply by about 7.8%, from 6.3% last year, the company added.

"Primary aluminum and downstream market fundamentals remain broadly supportive, and we have good reason to be optimistic about the year ahead," Alcan President and Chief Executive Dick Evans said.

Earlier Wednesday Alcan reported operating earnings of $1.09 per common share in the fourth quarter of 2006 compared to $0.54/share a year ago and $1.22/share in the third quarter.