Nalco hikes prices again

The state-owned National Aluminum Company, the second largest domestic aluminum producer, has hiked aluminum selling prices by Rs 5,900 per metric tonne (MT), effective from December 17, showing an average rise of about 5 per cent across the various aluminium products.

The current rise in prices is mainly attributed to the one-sided growth in prices on the London Metal Exchange (LME).

This is the second time the company has raised prices in December.

With the current price rise, aluminium ingot (IC20) is quoting at Rs 107,950 a tonne while aluminium alloy ingot (IA10) is selling at Rs 1,10,550 a tonne. Billets (CH10) are quoting at Rs 1,10,950 a tonne and aluminium sow ingot (SE07) is selling at Rs 1,08,000 a tonne. Aluminium wire rods (WE 20) and aluminium alloy wire rod (WA 10) are priced at Rs 1,16,550 a tonne and Rs 1,18,550 a tonne respectively.

The basic price of standard coil of alloy AA 8011 is fixed at Rs 1,28,000 a tonne, while standard sheet of alloy AA 8011 is selling at Rs 1,29,000 a tonne. Cast strip (CS 10) is quoting at Rs 1,17,300 a tonne.

The current hike in prices was anticipated as aluminium prices on the LME have been climbing up almost every day or two breaking all previous record highs. But experts continue to believe that the metal has still some steam left in it for further growth, as the existing stock, not enough to meet orders, can hardly last another seven weeks of consumption.

Apart from that, closure of smelters in Europe and production cuts in China are expected to hit supplies badly next year. Earlier, Hindalco Industries also raised aluminum prices by Rs 6,000 a tonne, effective from December 16.

Nalco revises selling prices as and when need arises depending upon the price movements in the international markets and the demand-supply situation in the country.

Earlier, effective from December 1, Nalco had hiked selling prices of basic aluminium products by an average Rs 6,000 a tonne "" the highest rise in one and a half years. Prices of rolled products have also been hiked by Rs 7,000 a tonne.

Although, LME spot prices have surged only $23.5 from December 1, the bullish sentiment in the international market prompts domestic aluminium producers to raise basic selling prices exorbitantly. A rise of about Rs 12,000 in just one month is phenomenal, a trader remarked.

The recent announcement of the Chinese aluminium industry "" representing 23 major producers "" to cut 10 per cent production to control overcapacity will open new opportunities to supply aluminium to the neighbouring country at higher prices.

In Mumbai, in the non-ferrous metals market, the prices of aluminium ingots shot up by Rs 5 to Rs 105 a kg since December 1, while utensil scrap surged by Rs 2 to Rs 90 a kg.