National Aluminum Company （Nalco） on Tuesday slashed aluminium prices by Rs 1,000 per tonne to around Rs 1,44,000 effective from Wednesday, in line with landed aluminium prices.
“In the past three-four days, our input costs have softened a bit and moreover we are offering it cheaper than landed price of aluminium… which means if someone wants to import they will have to pay higher price. Our price will be cheaper compared with import prices,” a top Nalco official said.
The price cut may be due to rupee appreciation in the past one month which has brought down import prices.
“Normally, if rupee appreciates, import prices fall. The company might have reduced prices to keep up with the decline in import costs,” Chandrani De, an analyst with Ambit Capital, said. On Monday, rupee gained and closed at Rs 44.9925 per dollar, up from Rs 45.9050 on January 31.
De said the company must have cut prices to keep in parity with the declining import prices.
However, globally aluminium prices continue to be firm in London Metal Exchange and demand also continues to be strong, De said. There has been no change in export prices and it has been maintained in line with London Metal Exchange prices, the company official said.
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