After a lull, the country has resumed aluminium exports. A large quantity of the commodity has been exported to south-east Asia. Also, despite a lower global demand, Indian aluminium is fetching a medium $27-$30 per tonne premium over the London Metal Exchange (LME) cash prices.
"During April-July last year, exports had fallen significantly because of high local demand. Since production at Bharat Aluminium Company Ltd (Balco) had stopped due to strike over the privatisation issue, stocks were low in the domestic market and the exportable amount had to be unloaded locally," industry sources told Business Standard.
Balco caters only to the domestic market. Two other aluminium majors - the state-owned National Aluminium Company Ltd (Nalco) and the Aditya Birla Group flagship Hindalco - export over 50 per cent of their annual production.
Exports from Nalco had fallen to 6,000 tonne per month from 10,000 tonne per month during April-July. Hindalco too had reduced exports considerably during the period.
Exports were down also because of the low global demand. "However, traders and consumers, especially from south-east Asia, have started coming to India and exports have gained momentum," they said.
According to Nalco sources, the company may export around 1,10,000-1,12,000 tonne aluminium during the 2001-02 fiscal compared to 1,18,000 tonne during 2000-01. Nalco had exported 67,000 tonne aluminium till December 2000.
Aluminium stocks in Singapore London Metal Exchange (LME) warehouses climbed to 96,550 tonne by January 8, up from a previous trough of 69,775 tonne on November 20 last year. India has been a major contributor to the stocks and more cargoes are underway.
India mainly exports aluminium to south-east Asian countries such as Singapore, Indonesia, Malaysia and Japan.
Some aluminium also goes to the USA and China. In 2000, China had imported 614,882 tonne of primary aluminium, which is 20 per cent of its total annual consumption.
However, China is likely to enter the export market in a big way this year.
It is expected to produce 5.25 million tonne of primary aluminium by 2005, the China-based Antaike Information Development Company said. Currently, Chinese products are offered at $18-$20 per tonne price.
