Global upswing helps domestic majors

 The Indian alumina and aluminium industry have emerged as the beneficiaries of improving global prices of alumina and aluminium. In all likelihood, all the domestic producers will raise selling prices in the near future. Nalco has already announced a price hike.

 The economic recovery in the US and alumina shortage will be sufficient enough to support higher aluminium prices in the near future. Analysts believe that improved demand in the US on economic recovery and higher contract prices for alumina would lead to further increase in aluminium prices.

 Several industry majors are of the view that demand from the US would drive improvement in demand. US producers expected rise in demand from automobile, packaging and consumer sectors. This is followed a phase of low seasonal demand during which output in US had declined by 1 per cent year-over-year (YoY) in the July-September quarter.

 World aluminium production grew at 7.1 per cent in the July-September quarter, primarily driven by higher demand growth of 9.6 per cent YoY from Asia (excluding China). On the other hand, China