Hindalco Industries and National Aluminium Company,
two leading aluminium makers in India, have increased
the price of the metal by Rs 2,000 to Rs 84,000 per
increase is due to firm international prices and a strong
local and overseas demand, say Hindalco officials. Aluminium
prices on the London Metal Exchange have risen around
7 per cent in 2003, to around $1,469 a tonne.
scrips of Hindalco and Nalco have been moving up for the
past two weeks. It is expected that Sterlite Industries-controlled
Bharat Aluminium Company, the other leading aluminium
producer, may also increase the price soon.
Hindalco and Nalco had increased the prices of aluminium
ingots and billets by Rs 1,000 per tonne and that of wire
rod products by Rs 500 tonnes since 1 August 2003. Nalco
has also increased the price of rolled products by Rs
to Imran Contractor of Startup Securities, international
aluminium prices are continuing to harden and on 8 October
it reached $1,469 a tonne. "Aluminium prices are
going up on expectation of a global economic recovery.
Then, there is the wild card of China, which is importing
large quantities of steel and aluminium. Dollar-denominated
aluminium prices are helped by the fact that the dollar
has been depreciating against other major world currencies
observes expect a 10-per cent growth in the volume of
aluminium to be sold by the two companies during financial
year 2004 "Aluminium demand will grow with growth
in automobiles and power transmission sectors. Alumina
exports are expected to be good. Though aluminium is normally
sold through long-term contracts, Indian alumina could
be sold at a premium in the spot market to Chinese smelters,
who are importing the metal aggressively," say analysts.