India's annual aluminium consumption grows 20% year over

India's annual aluminium consumption is on a growth trajectory. The total estimated consumption of the lightmetal used in cars to construction has increased considerably over the last two financial years. While sale of the metal has been steady through 2015-16, total aluminium imports scaled higher over 20 per cent vis-à-vis last financial year.

Ironically however, this come to the forefront at a time when the Indian government has ruled out the proposition of imposing minimum import price (MIP) on aluminium.

The major countries from where India has sourced unwrought aluminium in the last two fiscals to cater to its increasing domestic demand include Russia, Malaysia, Thailand, Oman, Qatar, the UAE and South Africa.

GROWING CONSUMPTION

(Composition of aluminium consumption, including scrap, over the last five years)

Domestic Aluminium Sale:

Total Estimated Consumption of Aluminium:

The IMF projected India's growth forecast as 7.5per cent against global average of 3.2per cent and China’s 6.2per cent. In India, it is majorly driven by domestic consumption due to lower energy prices and higher real incomes. Domestic demand of metal as per capita consumption in India is 2.2 kg vis-à-vis world average of 10.4 kg.

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In a recent Interview with AlCircle, Mr. Abhijit Pati, CEO, Aluminum Business of Vedanta had said, “There is a huge opportunity in India and the domestic metal demand is pegged to grow manifold.  It will reach 3.5 million tons from the existing 2.8 million tons due to emerging applications in electrification, transportation, aerospace, packaging, building & construction etc.”

“Further the government spending on Make in India and other infrastructure projects like rural electrification, railway transportation etc. could further boost the growth story. India is well placed with huge investments to cater domestic demand having installed a capacity of 4.1 MTPA which is currently operating at 2.3 MTPA (56per cent),” Pati added.