Nalco hikes aluminium prices by Rs 5,000 a tonne

State-owned National Aluminium Company (Nalco) has increased the price of the metal across categories by Rs 5,000 a tonne in the wake of firming up of prices in the London Metal Exchange (LME).

According to senior company official, the hike has already been effected from April 2 and with this, the average aluminium price currently stands at Rs 1.21 lakh a tonne.

“We have effected the price hike by Rs 5,000 a tonne. This was required to bring the price of the metal at par with the LME,” he said.

The price of aluminium on the London Metal Exchange (LME) is currently hovering at around $2,600 a tonne from just over $2,500 a tonne a month ago.

Nalco, the second-biggest producer of aluminium in the country, had also raised prices of the metal in January, but corrected them in the third week of the month itself as the global price slackened.

It had again increased the price by Rs 6,000 a tonne in February, but reduced it by Rs 2,500 a tonne in March.

The price of aluminium is on the upswing as a result of the slight demand-supply mismatch of the metal in the wake of closing down of some smelters in China.

Global production and consumption of aluminium currently stands at 39-40 mt tonnes a year. A slight change in the supply side lead to a price push.

Nalco achieved its highest-ever cast metal production of 4,43,597 tonnes in 2010-11, against the previous best of 4,31,488 tonnes in 2009-10.

On the sales front too, it recorded its highest-ever metal sales of 4,38,952 tonnes against a previous best of 4,35,979 tonnes in 2009-10, it said.

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