On Monday, Pittsburgh-based Alcoa Inc (AA. N) augmented its projection to 12% from 10% for 2010 global aluminum consumption, triggered by increasing demand. China is expected to get the major share of supply being an important market.

The demand for the primary aluminium is at 16.5 million tonnes and as per the forecasts; China will consume the largest chunk of the 39.2 million total tonnes.

Alcoa's Chairman and Chief Executive Officer, Klaus Kleinfeld stated that China is one of their most significant markets. They have a sale of around $1 billion in China and their company has an average growth rate of around 29% in the said market. China has managed its supply/demand balance effectively. They are going to have a surplus of roughly 1.2 million tonne a year.

Alcoa reduced China's surplus to 200,000 from 400,000 tonnes in the previous quarter, and projected a 1.0 million-tonne surplus for the Western World supply/demand balance in its forecast of 2010.

A relatively balanced forecast has been made for Alumina, which is 700,000-tonne surplus for China and a deficit of 500,000 tonne in Western World in 2010.

Alcoa expects the growth of automotive demand to rise to 15% from 10% in China compared with 2009. China's heavy truck and trailer segments growth rate will also flourish. Alcoa forecasts a 7% increase in China's beverage can and packaging market. Alcoa expects China's sales growth for commercial building and construction to be up to 15% from 10% in 2010.