Nalco CMD predicts Aluminium demand to expand by 5% - 6%

The Chairman and Managing Director of the National Aluminium Company Limited (NALCO), Sridhar Patra expects that the demand for aluminium to expand by 5% - 6%.

On 18^th October 2021, the aluminium stocks picked up as the world aluminium market witnessed a huge upsurge supported by the statement from the world's eighth-largest aluminium producer, Alcoa. The American multinational corporation, Alcoa was up 15% proceeding to its numbers, so on 18^th October 2021 aluminium stocks were a major point of discussion. Furthermore, global investment bank and financial services firm Credit Suisse has also stated that it remains most bullish on aluminium from the base metals pack.

Sridhar Patra, Nalco CMD said: “With the curtailment of production by the majors (like China and European Union) and revival of the industry after the COVID-19 pandemic has resulted in a wide gap, so it has pushed the prices up. Demand in the long-term will have a compound annual growth rate (CAGR) of 5-6% which is predicted and short-term it might have some fluctuations, but long-term there will be demand across the globe of 5-6%.”

The aluminium supply-demand gap has broadened due to major production curbs in China.

“At present, the supply-demand gap has widened because of certain curtailment of production by the major. China is 50-55% of the global production and consumption it accounts for. Now, due to the coal crisis, the prices have increased by 10% and the production has also been curtailed,” said Patra.