This has come as a surprise for the domestic economy was on a rebound and Indian primary aluminium manufacturers were expected to gain from the resultant higher demand.
Exports were also expected to do well, thanks mainly to Chinese demand. However, in the near future, exports to China may suffer mainly because there was danger of a supply glut in aluminium in China.
The good news on the export front was that China may start buying metal a year from now. Chinese demand was expected to pick up then as China has decided to curb capacity expansion by aluminium producers and meet the shortage of metal through imports.
China has more aluminium producers than the rest of the world combined recently announced that 700,000 tonnes per year of capacity will fail to be utilised as scheduled and warned that over-fast expansion could trigger a glut.
