A special mention was made about the extrusion business, which recorded a turnaround with sales and production crossing 7000 ton. Operating parameters of this business have improved quite considerably as the unit underwent a business restructuring exercise. On the operating front the company managed record levels of production at its aluminium smelter, alumina and sheet metal units. Demand growth from major aluminium consuming countries like US, Europe and Japan is projected to remain weak. However demand growth in China is expected to remain strong on the back of a buoyant economy.
China is a net importer of alumina and ingots.
The closure of smelters in the North Pacific region because of steep power cost is likely to lead to a reduction in aluminium supply of around 0.178mn ton. However alumina prices have fallen and are likely to remain at lower levels because of excess capacity. In the domestic market demand growth is likely to remain sluggish because of an expected slowdown in the manufacturing sector. Overcapacity is another problem plaguing the domestic semi-fabricated industry. Mr. Chaudhary MD of Indal opined that the supply exceeded demand in the sheets and foil business to the extent of 31,000 ton and 14,000 ton respectively.