Nalco to reduce domestic aluminium prices in line with falling international prices
National Aluminium Co (NALCO), the biggest state run producer of aluminium announced to have cut the aluminum prices by Rs 4,500 per tonne to Rs 1,28,400 ($93.50) on Monday.
By ET Online |
MUMBAI - National Aluminium Co (NALCO), the biggest state run producer of aluminium announced to have cut the aluminum prices by Rs 4,500 per tonne to Rs 1,28,400 ($93.50) on Monday. This decline, effective October 11, is in line with a plunge in international aluminium prices, which lost more than 30 per cent from its peak in July 2008.
According to Pawan Burde, metal analyst with Angel Broking "This is a perodical adjustment that companies do to diminish import threat. However, with a considerable decline in international prices, a 3 per cent decline in prices announced by Nalco shows that the outlook for the base metal is bearish based on troubles in the financial market and rising threats of global slowdown."
Domestic prices are derived from prices on London Metals Exchange, which have seen a decline of nearly 7 per cent last week. Aluminium prices are currently trading at $2230 per tonne well below their average cost of production, which is near $2700.
According to Pawan Burde, metal analyst with Angel Broking "This is a perodical adjustment that companies do to diminish import threat. However, with a considerable decline in international prices, a 3 per cent decline in prices announced by Nalco shows that the outlook for the base metal is bearish based on troubles in the financial market and rising threats of global slowdown."
Domestic prices are derived from prices on London Metals Exchange, which have seen a decline of nearly 7 per cent last week. Aluminium prices are currently trading at $2230 per tonne well below their average cost of production, which is near $2700.
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