Mumbai, June 1
FOR the second successive month, National Aluminium Company Ltd (Nalco), a major aluminium producer, has cut its prices by Rs 2,500 a tonne to Rs 90,750 for the current month following weak international trend.
Hindalco, another major aluminium producer, may also announce similar price cut, trade sources said.
Last month, Nalco reduced its prices by Rs 3,500 a tonne to Rs 93,250 in line with weak LME trend.
"The domestic market is linked with world market. Hence, any price fluctuation in LME influences our domestic market too. We are passing all this benefits to our customers," a Nalco official said.
"Local demand is restricted and would remain dull in the next three months due to lean season. Demand may go down by about 10 per cent during this period," a local trader said.
However, the company official said: "Overall demand for all aluminium products is good. Off-take from secondary producers such as cable manufacturers, conductors and extrusion units and rod manufacturers is also picking up."
Aluminium demand is growing at 7-8 per cent annually, he said.
Nalco recorded the highest-ever domestic aluminium metal sales of 2,05,797 tonnes for the FY 2004-05, compared to 1,66,650 tonnes in the previous year.
Export metal sales also reached to a record level of 1,32,730 tonnes from 1,29,719 tonnes in the previous year.
The company has completed its first phase of expansion. In the second phase, the company is expected to further increase its aluminium capacity to 4,60,000 tonnes from the current 3,45,000 tonnes.
"The second phase would be completed by 2007-08," he said.