(Adding context in paragraphs 3 and 4)
NEW YORK, July 8 Alcoa Inc has increased its
estimate for the global aluminum market deficit this year due to
capacity cuts in China, the world's No. 1 producer, a senior
executive said on Tuesday in a conference call to discuss
The U.S. aluminum producer expects demand to outpace supply
by 930,000 tonnes this year, up from its previous estimate of
730,000 tonnes, William Oplinger, Executive Vice President and
Chief Financial Officer, said.
The forecast would not include the more than 5 million
tonnes stored in London Metal Exchange-registered warehouses and
a similar tonnage of off-market inventory estimated to be held
outside of the LME network.
Those stockpiles have cast a long shadow over the global
primary aluminum market, pressuring exchange prices to levels
close to or below breakeven for many big smelters in recent
Oversupply in alumina, a key raw material for making
aluminum, will fall to an estimated 800,000 tonnes from 2.2
million tonnes expected previously due to lower output from
India and higher imports from China, he said.
(Reporting by Josephine Mason; Editing by Chris Reese and