Hindalco plans to sell two-thirds of its aluminium production overseas

Hindalco Industries Limited has planned to sell about two-thirds of its aluminium production overseas this year on lower local demand due to the coronavirus pandemic, Bloomberg reported.

Managing Director Satish Pai said exports will increase by around 65% of total production compared with last year’s 50%. Hindalco expects to sell 75% to 80% of its total aluminium production to overseas in the April-June quarter.

The demand for aluminium in India has decreased due to the coronavirus lockdown.

 “In the months of April and May, domestic demand was quite low due to the lockdown. This condition is currently mitigated by higher exports by domestic producers,” Pai said in an interview. “Hindalco has exported around 80%-90% of its output in the last two months.”

Increased exports would add to global supplies that are estimated to record a surplus of 3 million tonnes in 2020 due to lower demand. The price on the London Metal Exchange has declined by about 11% this year. The inventories are near the highest in more than three years.

The company last year produced a record 1.3 million tonnes of aluminium. South Korea, Malaysia, Taiwan, Thailand, US, Brazil and Japan were the top importers.