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Aluminum prices may recover soon - NALCO Chief
Edited by : AL CIRCLE
2 min read
NALCO as saying that aluminum prices may recover soon from a low of USD 2,600 per tonne as the current declining trend in metal prices is not due to demand supply mismatch.
Mr BL Bagra acting chairman of NALCO said that "The correction is an impact of stronger dollar. It has got nothing to do with the market dynamics of demand supply mismatch in the international market. In fact, prices of almost all metal zinc, copper and silver among others are now receding. However, I believe the price of aluminum might recover soon from the current low of USD 2,600 per tonne and would reach to the level of USD 2,700 per tonne recorded in late April.”
Aluminum price on the London Metal Exchange are hovering around a little over USD 2,600 per tonne against USD 2,700 per tonne in April. The prices were around USD 2,500 per tonne on LME in March. The fall prices in global markets forced the domestic major to cut down its rates by INR 6,000 per tonne late last week.
Earlier, it had raised the rates by INR 3,000 per tonne in the first week of the month on firm global prices. The price of aluminum was on the upswing as a result of the slight demand supply mismatch of the metal in the wake of closing down of some smelters in China.
NALCO had also raised prices in January, but corrected them in the third week of the month itself as global price dipped. It again in February raised the price by INR 6,000 to around INR 0.121 million tonne but reduced it by INR 2,500 per tonne in March.
Global production and consumption of aluminum currently stands at 39 million to 40 million tonnes per annum. A slight change in the supply side leads to a price push.
Mr BL Bagra acting chairman of NALCO said that "The correction is an impact of stronger dollar. It has got nothing to do with the market dynamics of demand supply mismatch in the international market. In fact, prices of almost all metal zinc, copper and silver among others are now receding. However, I believe the price of aluminum might recover soon from the current low of USD 2,600 per tonne and would reach to the level of USD 2,700 per tonne recorded in late April.”
Aluminum price on the London Metal Exchange are hovering around a little over USD 2,600 per tonne against USD 2,700 per tonne in April. The prices were around USD 2,500 per tonne on LME in March. The fall prices in global markets forced the domestic major to cut down its rates by INR 6,000 per tonne late last week.
Earlier, it had raised the rates by INR 3,000 per tonne in the first week of the month on firm global prices. The price of aluminum was on the upswing as a result of the slight demand supply mismatch of the metal in the wake of closing down of some smelters in China.
NALCO had also raised prices in January, but corrected them in the third week of the month itself as global price dipped. It again in February raised the price by INR 6,000 to around INR 0.121 million tonne but reduced it by INR 2,500 per tonne in March.
Global production and consumption of aluminum currently stands at 39 million to 40 million tonnes per annum. A slight change in the supply side leads to a price push.
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