According to Mr Klaus Kleinfeld CEO of Alcoa said that, US based aluminum giant Alcoa expects aluminum demand to increase 7% to 49.4 million tonne in 2013, up 1% from the 6% growth experienced in 2012.

Mr Kleinfeld during a conference call to discuss the company's financial results said that the bump in global demand will be bolstered by an 11% expansion in demand from China, as well as strong growth from Brazil (3%), Russia (1%) and India (3%).

The change in demand from North America and Europe should remain relatively similar to last year, with North America seeing a 4% increase in demand (equal to the 2012 growth figure) and European demand, which fell by 2% in 2012, declining by just 1% year on year in 2013.

Mr Kleinfeld said that globally, the company is looking at growth in all of its end markets this year. As a result of the expected demand growth, Alcoa is projecting a 200,000 tonne alumina deficit and a 535,000 tonne aluminum surplus in 2013. Given the size of these markets, however, the figures show that supply and demand is essentially balanced.

The company is also predicting a recovery in LME prices, linked more to the global economic situation than to market fundamentals. He said that "The LME price these days is very much trading on general economics.... it's not the fundamentals.”