Aluminium majors lift prices by Rs 2000/tonne

Domestic aluminium majors National Aluminium Company (Nalco), Hindalco and Sterlite Industries-controlled Bharat Aluminium Company (Balco) today increased primary metal prices by Rs 2,000 per tonne across all grades.

After the price increase, standard aluminium ingot prices have gone up to Rs 94,700 per tonne, while price of aluminium sow ingots has increased to Rs 1,04,300 per tonne. Prices of aluminium billets after the increase is Rs 97,500 per tonne and wire rod prices have gone up to Rs 1,02,550 per tonne.

A senior Nalco official said, "We have adopted a pricing strategy, which takes into consideration the market situations and international price trends. The domestic prices are reviewed on a regular basis and this price increase is keeping in mind the sharp increase in the aluminium prices on the London Metal Exchange."

Aluminium metal prices jumped 6.1 per cent in the month of December on the London Metal Exchnage (LME) to stand at a high of $1963 per tonne, from $1850 per tonne in November.

The Nalco scrip today rose 2.34 per cent to close at Rs 205.65 on the Bombay Stock Exchange, while the Hindalco stock registered a rise of 1.12 per cent to close at Rs 1442.85.

The Sterlite Industries's share recorded a jump of 4.91 per cent to close at Rs 644.90. Senior officials at Hindalco and Balco confirmed the price increase and said that the outlook for the year was upbeat because of a firm demand.

A metals analyst said, "The hike in international metal prices has been led by China. The Chiense government has imposed a duty on exports, which will affect global availability pushing prices upwards."

An industry expert said that the inventory levels in the physical market have slipped significantly leading to avery tight situation. Global alumina prices have also been on the rise, due to shortage and unavailability.