16 MARCH 2015AlCircle.com
Aluminium industry bags more coal mines indicating rising demand for the metal in India
Edited by : AL CIRCLE
1 min read
In the recent Indian coal auctions, aluminium bagged more coal mines than steel as a result of aggressive bidding from aluminium producers pointing to a rising domestic demand for the metal.
While aluminium is an energy intensive metal to produce, steel needs to coal as a reduction agent to form the iron and carbon alloy. Steel plants collectively owned majority of coal mines, 83 percent of the total coal reserves available across the 31 auctioned blocks, but after the auctions they now own only 32 percent.
Aluminium producers earlier had only one percent share in the total coal reserves but now they have ownership of 36 percent of available coal reserves.
Demand for the lighter metal is seen to be on the rise according to market analysis and aided by the weaker dollar has had a positive effect on metal prices at futures trade in the country.
On Friday, aluminium prices reached a high of INR 111.85 per kg for March delivery while aluminium for delivery in April rose 0.4 per cent to INR 112.55 per kg at the Multi-Commodity Exchange.
While aluminium is an energy intensive metal to produce, steel needs to coal as a reduction agent to form the iron and carbon alloy. Steel plants collectively owned majority of coal mines, 83 percent of the total coal reserves available across the 31 auctioned blocks, but after the auctions they now own only 32 percent.
Aluminium producers earlier had only one percent share in the total coal reserves but now they have ownership of 36 percent of available coal reserves.
Demand for the lighter metal is seen to be on the rise according to market analysis and aided by the weaker dollar has had a positive effect on metal prices at futures trade in the country.
On Friday, aluminium prices reached a high of INR 111.85 per kg for March delivery while aluminium for delivery in April rose 0.4 per cent to INR 112.55 per kg at the Multi-Commodity Exchange.
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