Mumbai: The AV Birla-promoted Hindalco Industries, one of the leading aluminium makers in India, has increased the price of different varieties of the metal in the range of Rs 1,000 and Rs 2,500. Now, the price of ingot aluminium, the basic raw material, has increased from Rs 84,000 to Rs 85,000 per tonnes.

The 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 over 7 per cent in 2003, to around $1,500 per tonne. It is expected that National Aluminium Company (Nalco), the other leading aluminium producer in India, may also increase its prices soon.

The scrip of Hindalco has been moving up for the past two weeks. Hindalco closed at Rs 1,235 on the Bombay Stock Exchange on Tuesday from Rs 1,035 in September. Both Hindalco and Nalco have been increasing the prices of aluminium ingots and billets by Rs 1,000 per tonne and that of wire rod products by Rs 500 per tonne since 1 August.

Currently, the domestic demand of aluminium is pegged at around 6.5 lakh per tonne and the supply is around 9 lakh. "Aluminium prices are going up on the expectations of a global economic recovery. China is also importing large quantities of steel and aluminium," say industry analysts.

Industry observers expect a 10-per cent growth in the volume of aluminium to be sold by Hindalco and Nalco during the financial year 2003-04. "Aluminium demands will grow with growth in automobiles and power transmission sectors."