Domestic aluminium producers are all set to reap the benefits of global uptick in the metal by raising their product prices. |
While private sector Hindalco Industries raised its product prices by Rs 10,000 per tonne yesterday, state-run National Aluminium Company (Nalco) today increased prices of its primary aluminium products by Rs 8,000 per tonne across all varieties. |
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Both the companies, considered trend setters in the domestic aluminium market, move in tandem to raise prices as both follow the London Metal Exchange (LME) trends. |
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"We are a globally benchmarked company. We increase prices, whenever there is a surge in the LME tags, and vice-versa," a Hindalco spokesperson said. This is the second price hike this month by both the aluminium giants. |
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The companies had raised selling prices by six per cent, or Rs 8,000-9,000 per tonne, effective May 1. |
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Aluminium prices on the LME have surged by $185 in the first fortnight of the current month. Despite a rise in demand from consumer industries, the metal's stocks and warrant also perked up by 28,275 tonne and 33,275 tonne, respectively, during the month. |
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Experts are of the opinion that domestically fundamentals are strong as the proposed infrastructure projects are expected to drive demand. The government's electrification project coupled with improved standard of living of common people would pump investment into aluminium consuming industries, a trader said. |
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In the Mumbai physical market, aluminium ingot price jumped by Rs 150 per kg towards the end of the first fortnight compared with Rs 139 in the beginning of the current month. During the same period, aluminium utensil scrap also surged by Rs 4 to Rs 112 per kg. |
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Justifying the upward revision of prices by Nalco, a local trader said aluminium was witnessing an all round growth. Hence, domestic producers must keep pace with the world development, said the trader. |
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Hindalco produced 4.28 mt of aluminium and 12 mt of alumina in 2005. Nalco stood second with 0.36 mt of aluminium and 1.58 mt of alumina. Vedanta group company, Bharat Aluminium Company and Madras Aluminium Company produced 139,350 mt and 36,600 mt of aluminium and 200,000 mt and 70,000 mt of alumina, respectively. |
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