PARAMARIBO, Suriname (CMC) — Rapid industralisation in China and India is fueling a positive outlook for aluminum and aluminum prices with the US-owned Alcoa, which operates Suriname Aluminum Company, LLC (Suralco), bauxite mining company and refinery, is set to benefit on short and mid-long term.

“We are also optimistic about Alcoa’s long-term growth projects in China, Australia, Jamaica, Suriname and Brazil. Demand from these countries is expected to increase its alumina and aluminum production capacity while lowering its operating costs,” Zacks Investment Research said on Tuesday.

“Alcoa has a positive outlook for the rest of 2011 and expects global aluminum demand to grow 12 per cent in 2011,” Zacks said.

“Alcoa reported first-quarter 2011 earnings per share of US$0.28, which was a penny ahead of the Zacks Consensus Estimate. However, revenues of US$5.96 billion missed the Zacks Consensus Estimate of US$6.112 billion.

The company posted improved profits across all its business segments and set profit records in its midstream and downstream businesses. The company expects aluminum to remain in great demand for the rest of 2011 due to the metal’s unique properties of being light, strong and reusable.”

The research analysis said that Alcoa is expected to benefit from the improving outlook of aluminum and alumina prices. China and India are undergoing rapid industrialization. Both these factors are positives for underlying aluminum demand.

“We expect aluminum demand to increase over the next three years, outstripping supply growth. Therefore, the aluminum market is likely to see deficits for a prolonged period. This provides a backdrop supportive of high alumina and aluminum prices.

Alcoa’s presence in Suriname extends back to 1916. The business originally focused on mining bauxite, an ore from which alumina is extracted and used to make aluminum.

In 1958, Suralco signed an agreement with the Suriname government to develop the country’s hydropower and bring the aluminum industry to the country.

Suralco produces approximately 5,350 metric tons of alumina daily at its facility here.