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Nalco hikes prices; auto kit firms to be hit
Edited by : AL CIRCLE
2 min read
The National Aluminium Company has increased price of aluminium sold in India by Rs 2,000 effective from January 3 to Rs 137,200 per tonne.
A senior company official said the company has rolled back the discount offered in December thus effectively hiking prices by Rs 2,000 per tonne.
“We will wait and watch the aluminium price movement on the London Metal Exchange and may take another price revision in the middle of the month,” said the official. Government of India controlled National Aluminium Company (Nalco) is Asia’s largest integrated aluminium complex, encompassing bauxite mining, alumina refining, aluminium smelting and casting, power generation, rail and port operations. Nalco produces and exports alumina and aluminium.
Bhavesh Chauhan, an analyst at Angel Broking said prices on the London Metal Exchange are stable but the company must have increased prices due to rupee depreciation. “There is enough room for price increase as although aluminium prices are stable in LME but if the prices are converted into rupee it is much lower. Not only Nalco other metal companies in India are also increasing price taking advantage of rupee depreciation,” said Chauhan.
Ravindra Deshpande an analyst at Elara Capital said, “Aluminium prices have declined by around 11 per cent on the London Metal Exchange in the last three months.” But the rupee has depreciated far more thus providing a window of opportunity for domestic producers to up prices.
The increase in aluminium prices is likely to hit margins of cookware, consumer durables and auto component makers thus forcing them to up prices to mitigate increase in input costs on their margins.
The auto companies are increasing use of aluminium for aluminium alloy wheel rims used in top end cars. Auto majors to reduce the kerb weight of passenger vehicles resulting in increasing mileage are also using aluminium.
Eric Braganza, president at Haier India said, “We will immediately increase prices in categories such as air-conditioners by around 10 per cent, refrigerators by five to seven per cent and washing machines by three to five per cent, thanks to high raw material prices and rupee depreciation.” A Hitachi India spokesperson also said that the company is planning to increase prices due to increase in input costs.
A senior company official said the company has rolled back the discount offered in December thus effectively hiking prices by Rs 2,000 per tonne.
“We will wait and watch the aluminium price movement on the London Metal Exchange and may take another price revision in the middle of the month,” said the official. Government of India controlled National Aluminium Company (Nalco) is Asia’s largest integrated aluminium complex, encompassing bauxite mining, alumina refining, aluminium smelting and casting, power generation, rail and port operations. Nalco produces and exports alumina and aluminium.
Bhavesh Chauhan, an analyst at Angel Broking said prices on the London Metal Exchange are stable but the company must have increased prices due to rupee depreciation. “There is enough room for price increase as although aluminium prices are stable in LME but if the prices are converted into rupee it is much lower. Not only Nalco other metal companies in India are also increasing price taking advantage of rupee depreciation,” said Chauhan.
Ravindra Deshpande an analyst at Elara Capital said, “Aluminium prices have declined by around 11 per cent on the London Metal Exchange in the last three months.” But the rupee has depreciated far more thus providing a window of opportunity for domestic producers to up prices.
The increase in aluminium prices is likely to hit margins of cookware, consumer durables and auto component makers thus forcing them to up prices to mitigate increase in input costs on their margins.
The auto companies are increasing use of aluminium for aluminium alloy wheel rims used in top end cars. Auto majors to reduce the kerb weight of passenger vehicles resulting in increasing mileage are also using aluminium.
Eric Braganza, president at Haier India said, “We will immediately increase prices in categories such as air-conditioners by around 10 per cent, refrigerators by five to seven per cent and washing machines by three to five per cent, thanks to high raw material prices and rupee depreciation.” A Hitachi India spokesperson also said that the company is planning to increase prices due to increase in input costs.
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