Major importers of the metal are semi-fabricated products and aluminium conductor manufacturers. Aluminium is also imported by those traders who get duty benefits for exporting value-added products. The country's total annual production is estimated at about 620,000 tonnes and demand at 565,000-570,000 tonnes. Analysts say domestic producers could hike aluminium prices to take an advantage of the situation because landed costs of imported aluminium are high compared with domestic production. There is a difference of Rs 15,000-20,000 between domestic prices and the landed cost of imported aluminium.
Domestic producers revise aluminium prices twice in a month.
Nalco exports about 100,000 tonnes of aluminium in a year while Hindalco's exports varies from 15,000 to 30,000 tonnes, analysts said. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. All Rights Reserved.