“The global rise in Aluminium prices is only a spike driven by strong market sentiments, not by market fundamentals", Dr Tapan Kumar Chand, Resident Director - Vedanta & Former Chairman cum Managing Director of National Aluminium Company (NALCO)

AlCircle team received a great opportunity to interview Dr Tapan Kumar Chand, Resident Director - Vedanta & Former Chairman cum Managing Director of National Aluminium Company (NALCO) following the virtual event of “Indian Aluminium Summit”.

AlCircle: What is the major reason behind the surge in the price of Aluminium globally?

Dr T.K. Chand: The surge in prices of Aluminium is a part of the general surge of metal prices in the Global Market. In the case of Aluminium, production cut in North-Western Provinces of China due to power rationing, imposition of expert tax by Russia & bullish sentiment towards commodities are primarily responsible for pushing the prices up. These supply constraints have got aggravated due to factors like one third production curtailment at Alumar Alumina Refinery in Brazil, labour strike at Kitimat Smelter, Canada & etc. On demand side stimulus package in major economies like EU announcing Euro 750 billion for next 6 years under Next Generation EU, the USA approving 1.2 trillion spent plans over 8 years etc., have built up demand for the metal.