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India’s economy is slowing, with demand for aluminium falling 6 per cent in the second quarter of 2019

2019-11-15 Jessie Comments Off

In a recent interview with the economic times, Satish Pai, general manager of Hindalco, said that Hindalco’s business had been affected by the slowdown in the Indian economy, which led to a 6 per cent fall in aluminium demand in the second quarter.
Pai also said he expected aluminium demand to grow by 2 to 3 per cent, but remained low across the construction, infrastructure and automotive sectors.
Hindalco sells about 328,000 tons of aluminum extrusions every quarter, among which the automobile industry accounts for 5%, the electrical industry for 40%, the transportation industry for 10-15% and the packaging industry for 20%.
What worries him is that, despite the decline in domestic demand, China is still importing as much as 60 per cent of its aluminium, and aluminium scrap accounts for more than 50 per cent of imports.
However, they have warned the government of a possible increase in imports, particularly from China, and the government is aware of such concerns.
Pai said that while aluminium demand in India had fallen, Hindalco’s production had not been affected and production costs had not been affected.
Hindalco sold 328kt, Mr Pai added.
Referring to the Muri case, Pai also said that Hindalco hopes to reopen the Muri alumina plant this quarter.
Novelis, which supplies aluminum sheets to cans and car makers, was also unaffected, Mr. Pai said, thanks to the anti-plastic movement and growing demand for electric cars.
In addition, Novelis expects to complete its acquisition of Aleris on January 21, 2020.
Pai said in Belgium Duffel factory sales progress too quickly, is expected to be completed in November.