Nalco cuts aluminium price by 2.1%

The company's second-largest aluminium producer National Aluminium (Nalco) has cut prices for the seventh time this year in response to the globally falling prices of the metal and its raw material alumina.

The company has slashed the price by 2.1% to Rs 1,13,000 a tonne with effect from September 28. In the last two months aluminium prices on the London Metal Exchange have fallen by 8%.

Prices have been falling since the beginning of the year and local producers are just reflecting the globally falling prices.

High price level was seen at the end of the last year (around $2,960 a tonne), which is now hovering around $2,500. The price of alumina, quoted at $500 per tonne then, is now moving in the range of $300-350.

The fall in prices is triggered by China, a major driver of aluminium demand. China has increased tax on exports and cut the rebate for exports. "The discouragement of exports has created a glut in China and less demand for alumina. So prices of raw material and finished products are falling," an analyst with India Infoline commodities said.

He expects aluminium prices to settle at the current level and to move in the $2400-2500 range by December.