Hindalco aiming to hit a record $1 billion worth of aluminium export by 31st March

Birla-owned Hindalco Industries is targeting to export a record $1 billion worth of aluminium by 31st March as the demand in Europe and US rise.

At the close of the financial year ending March 31, the overseas shipments are expected to triple reaching as much as 400,000 tonnes, whereas they have not even reached half that number as of the middle of last month, say sources.

Hindalco, the world’s largest supplier of aluminium sheets supplier has been facing a slowdown on the domestic front for five straight quarters. Now, as the emission norms in US and Europe get stricter, auto makers are scrambling for aluminium to produce lightweight, fuel-efficient cars, Hindalco can look forward to greater overseas sales and a steady market for its new increased capacity.

The demand-supply of aluminium in India was already awry and the gap widened when Hindalco decided to start two smelters of 360,000 tonnes each with one in Madhya Pradesh the other in Odisha. If the demand in India does not rise, the company will have to look somewhere else to sell their product.

The premium rates at present are sky high, especially in the US, European Union and Japan, gaining 82 percent this year owing to a deficit of the metal outside China.

Nic Brown, head of commodity research at Natixis SA said in October that aluminium demand is expected to grow at least 5.5% in the coming years while the supply is unlikely to grow beyond 3% which will have an obvious effect on the price of the metal making it jump to around $2,070 a ton next year and $2,240 in 2016 compared to $1,896 this year.