Nalco may switch back to long-term contracts as alumina prices dive

The company had moved away from long-term deals with major buyers and began risking its surplus in the international spot markets, selling over 95% of its exportable alumina here

State-run producer National Aluminium Company Ltd (Nalco) plans to reboot its strategy on alumina sales in international markets.

Nalco has been risking all its surplus alumina in the spot markets, a departure from the previous strategy of clinching long-term contracts with major buyers. In the last fiscal year, the navratna company sold over 95 per cent of its exportable alumina in international spot markets as prices had rocketed to over $600 per tonne, bringing in windfall gains for the aluminium maker.

Riding on buoyant prices, Nalco had clocked its highest ever realisation of over $700 per tonne from alumina