According to Mr. B L Bagra, Chairman of National Aluminium Co Ltd. (Nalco) in India, the prices of aluminum should increase by 10% from the present level of US$1,850/ton to US$2,000/ton in the next 2 to 3 months.
He added that aluminum prices have remained subdued due to poor demand from all across the user sectors including transport, packaging and construction, which account for nearly 70% of the global 42 million tons consumption of the metal.
Bagra said that squeezed margins have forced great deal of aluminum capacity to put on hold as the price of the metal is declining while the raw material costs are on the rise.
The ideal price of of aluminum should average between US$2,100/ton~US$2,200/ton in the current year but it is nowhere near there.
Indian producers were able to offset the condensed margin, partly because of the devaluation of around 12% in currency but the pressure is still there since the price of aluminum in the London Metal Exchange decreased by more than 25%.