Falling commodity prices pull down Inalum’s sales by 10% in Q1 2015

Global commodity prices have pulled down the sales of PT Indonesia Asahan Aluminium (Inalum) by 10% in the first quarter of 2015.

The fall in sales and the steadily declining premium price in the global market over the past two months has prompted the decision that the company will not be exporting the commodity this year said the PT Inalum President Director, Winardi Sunoto.

Premiums have plummeted to US$ 250 per ton this March and April compared to the lucrative premium of $400 per ton in the corresponding period last year. That has led the company to not ship any product abroad in the first quarter of this year partly contributing to the 10% decline in sales.

The company which in normal circumstances exports 8,000 tons on a quarterly basis is looking for other options, mainly aluminium derivatives in order to “offset the falling prices” says Winardi.

Inalum is looking for ways to boost its products including the usage of PT Asahan Aluminium Alloys’ (A3) facility and approaching automakers for possible partnerships for the usage of their products.

To meet the country’s high domestic demand for the metal much of Inalum’s production is consumed in the country post the acquisition of the facility by the government. There are even plans to increase the production capacity from its current 260,000 tons to 300,000 this year and by 2020 they are aiming to touch the 500,000 target.