Metal cos brace for price cuts as global mkts slip

KOLKATA: Domestic metal producers are bracing up for price cuts with commodities such as aluminium, copper and zinc being hammered down over increasing debt fears in Europe. Given the slide in base metal prices last week on the benchmark London Metal Exchange (LME), which governs metal prices at home, leading companies such as Nalco, HCL, Sterlite to Hindustan Zinc are taking stock of the situation.

But in India, the situation is only likely to help boost the fortunes of the companies since the demand position remains strong in the domestic market. While aluminium is primarily used in packaging and transport, copper is used in power transmission, while zinc mainly finds application as an anti-rust agent.

“We are watching the trend on a day-to-day basis. In fact, we reviewed the prices during the day. However, we have not decided on the quantum of the price revision. We will take a call on it in day or two,” Ansuman Das , director (commercial) at Nalco told ET on Monday.

Metal companies fix prices based on import parity adjusted for the rupee-dollar exchange rate. On the benchmark London Metal Exchange, three-month aluminium closed the week at $2209 per tonne, a $100 fall.