National Aluminum Company is likely to increase the price of the metal by INR 2,000 per tonne to INR 3,000 per tonne with effect from April in sync with firming global prices.
Sources in Nalco said that a decision on the impending price rise will be taken and the hike will be effective April 1. However, when contacted Mr BL Bagra acting CMD of Nalco said as a matter of policy the company does not give any price outlook.
Sources however said that the price rise was necessary to ensure parity with import prices and to pass on the rise in input costs. Dollar weakness has also contributed to the rise in aluminum prices. The price of aluminum on the London Metal Exchange is currently hovering at around USD 2,570 per tonne.
Global production of aluminum currently stands at 39 million tonnes to 40 million tonnes per annum. Demand also stands at around the same level. Meanwhile, some smelters have been closed in China in the recent past, leading to firming up of the price.
However he current small demand supply mismatch is only a temporary phenomenon as with the firming up of the price the closed smelters have again resumed operation.
Nalco had also raised prices in January, but corrected them in the third week of the month itself as the global price slackened. It again raised the price by INR 6,000 to around INR 0.121 million tonne in February but reduced the rate by INR 2,500 per tonne in March.
It said that it hopes to clock an over 23% rise in net profit in the current fiscal to INR 1,005 crore on higher metal prices. The company which reported a INR 814.22 crore net profit in FY 2010 aims to clock INR 1,098.24 crore net profit next fiscal and INR 1,252 crore in 2012 to 2013.
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