Domestic aluminium prices building up

Domestic prices of aluminium have moved up in the last 10 days. Aluminium wire rods have witnessed a price increase between Rs 2,000 - Rs 3,000 per tonne, while aluminium ingot prices have jumped Rs 1,000 per tonne.

The price increase has been implemented by all the major aluminium players - A V Birla group's Hindalco Industries, Bharat Aluminium Company (Balco) and National Aluminium Company (Nalco).

While the ruling price of aluminium ingots is around Rs 83,000 per tonne, the price of wire rods is at Rs 95,500 per tonne.

Base aluminium metal of 99.5 per cent purity has also witnessed a rise of around Rs 1,000 per tonne at around Rs 88,000 per tonne.

A senior Balco executive told Business Standard, "The price increase in the domestic market is mainly because aluminium prices have firmed up at the London Metal Exchange. The domestic demand scenario is also looking good as the applicability of aluminium is widening."

An industry analyst said, "With China pulling the global demand, there could be a scarcity of alumina, which has led to a global price rise in the base aluminium metal in the last few days."

Industry sources also indicated that there could be a futher improvmenet in prices in the next few weeks.

"Since this price increase has sustained, we are expecting base metal prices to firm up in the coming days. However, the increases would not be very steep and price rise will take place gradually," they said.