23 AUGUST 2012CNBC
Rise in Indian aluminium exports may put pressure on LME price
Edited by : AL CIRCLE
1 min read
Aluminum producers outside of China, the world's largest producer of the metal, have been cutting production to counter a drop in Aluminum prices, but traders said this may do little to bolster LME Aluminum if other countries such as India seek to make up for the production shortfall this year.
India's Aluminum exports could rise 5 percent in the current fiscal year to 325,000 tonnes despite a slowdown in global demand, a senior industry official said.
"A production increase by India will cancel out the cuts by other Aluminum producers and put further pressure on LME Aluminum prices," said a Shanghai-based trader.
"India is one of the main sources of Aluminum ingots nowadays whenever the arbitrage window in China is open. The premiums for Indian Aluminum ingots are about $230-$240, whereas those from Australia and other Western suppliers are $260-$270 with very few deals closed," said Shanghai Metal Markets analyst Zhang Chenguang.
($1 = 6.3585 Chinese yuan)
India's Aluminum exports could rise 5 percent in the current fiscal year to 325,000 tonnes despite a slowdown in global demand, a senior industry official said.
"A production increase by India will cancel out the cuts by other Aluminum producers and put further pressure on LME Aluminum prices," said a Shanghai-based trader.
"India is one of the main sources of Aluminum ingots nowadays whenever the arbitrage window in China is open. The premiums for Indian Aluminum ingots are about $230-$240, whereas those from Australia and other Western suppliers are $260-$270 with very few deals closed," said Shanghai Metal Markets analyst Zhang Chenguang.
($1 = 6.3585 Chinese yuan)
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