Aluminium product prices up by Rs 3000/t

Aluminium majors National Aluminium Co (Nalco), Bharat Aluminium Co (Balco) and Hindalco have jacked up the domestic prices of aluminium products by around Rs 3,000 per tonne, effective beginning this month.

While the price of electrical conductivity (EC) grade wire rods has risen to Rs 108,000 per tonne, after an increase of Rs 3,000, aluminium ingots have also witnessed a similar price increase.

The price of commercial grade base aluminium metal of 99.5 per cent purity has also increased by around Rs 2,000.

Confirming the price hike, senior industry sources told Business Standard, "Domestic aluminum prices tag along with the London Metal Exchange prices, which have increased significantly in the last month."

Spot aluminium prices have been in the range of $1,650 - $1,700 per tonne at the London Metal Exchange in the last few days, while in February, prices were around the $1,750 mark.

Industry analysts said, "Alumina prices have increased in the global market as there is a heavy demand from China and therefore aluminium prices have also peaked in the last few weeks."

Domestic demand has also been firming up with increased applicability of aluminium products, analysts said.

While both Balco and Nalco are undergoing capacity expansions to meet the growing demand, Hindalco is in the process of completing its expansion project.

Senior industry sources said that aluminium prices were likely to remain firm in the next few weeks.