Nalco hikes prices by 2 per cent

Rising international prices, coupled with tightness in alumina supply, forced the public sector aluminium major National Aluminium Company (Nalco) to raise selling prices of its aluminium products by over 2 per cent in the domestic market, with immediate effective. The company effected a Rs 2,500 hike across all categories.

With the present price rise, aluminium ingot (IC20) is quoting at Rs 1,13,950 a tonne, while aluminium alloy ingot (IA10) is selling at Rs 1,16,550. Aluminium billet (CH10) went up to Rs 1,16,950 a tonne and aluminium sow ingot (SE07) surged to Rs 1,14,000 a tonne.

Meanwhile, aluminium wire rods (WE20) rose to Rs 1,22,550 a tonne and aluminium alloy wire rod (WA10) shot up to Rs 1,24,550.

This is the second such rise in Nalco's prices this month. The company had begun this year with a price hike of Rs 3,500 a tonee, which made other aluminium major, privately-owned Hindalco Industries to raise its selling prices by Rs 4,000 a tonne. As of now, Hindalco has not formally declared any price revision.

The present price rise is mainly attributed to a similar movement on the London Metal Exchange (LME). Aluminium price surged $95 a tonne on the LME in the last fortnight on fund buying from speculative traders despite warehouse stocks jumped by 12,175 tonne to 6,55,875 tonne.

The world aluminium industry is facing high energy prices. So, many units are either closing down gradually or cutting down production. As energy contributes about 50 per cent of the total aluminium production costs, any rise in energy prices hits producers directly.

Announcement of the closure of Steg primary smelter of Alcan Inc has much bearing on the prices as traders were uncertain about the availability of metals.

Besides, the energy prices have witnessed unprecedented rise in the Valais region and across Europe, which has made the production of primary aluminum at this particular facility economically unsustainable, a company source said.

The company warned that continuing operation at this smelter would result in "significant financial losses."