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Aluminium Scenario

Major Characteristics:

  • Aluminium, chemical symbol-AI is the third most abundant element in the earth’s crust. It exists in very stable combination with other materials particularly silicates & oxides.
  • It is resistant to common atmospheric gases & a wide-range of liquids. Hence, aluminium is known for its durability & high resale value.

Demand & Supply Scenario:

  • In 2010; global primary aluminium production was 40.795 million MT; up from 36.974 million MT in 2009. Global primary aluminium consumption rose to 40.218 million MT in 2010, compared with 35.073 million MT in 2009.
  • The global aluminium market was in surplus by 577,000 MT in 2010, though down from 1.901 million MT in 2009.

Global Scenario:

  • World primary aluminium production increased in 2010 compared to the production in 2009 & 2008.
  • Major exporting countries are Germany, Russia, & Canada, while major aluminium importing countries are USA, Germany, & China.

Indian Scenario:

  • India ranks fifth in the production of aluminium among the world with a production of 1.6 million MT per annum.
  • India’s primary aluminium consumption in 2009 grew by 7.1% to 1.4% million MT. Its per capita consumption of metal is 1.3kg.
  • Indian aluminium industry consists of four primary producers; Hindalco; NALCO; BALCO; Vedanta aluminium.

Factors influencing the market:

  • Aluminium prices in India are fixed on the basis of the rates that rule on the International spot market; & Rupee & U.S Dollar exchange rates.
  • Economic events, global financial crisis, recession, & inflation affect metal prices.
  • Commodity Specific events such as the construction of new production facility or processes, unexpected mine or plant closures; or industry restructuring, all affect metal prices.
  • Government set trade policy (implementation or suspension of taxes, penalties, & Quotas) that affect supply by regulating (restricting or encouraging) material flow.
  • Geopolitical events involving governments or economic paradigms & armed conflict can cause major changes.