Cheap Chinese Import Poses Challenge to Indian Aluminum Industry

Amid slowdown in Chinese economy, low demand and Greek debt crisis, the world Aluminum Industry is going through a very challenging period and the Indian Aluminum Industry is not insulated from the situation. Creativity, technological innovation and right policy approach from the government side will help the Indian industry to become competitive and overcome the challenge, leading Aluminum Industry leaders opined during the ‘19^th international conference on non-ferrous metals’.

With 35 MnT pa capacity, China is the leading Aluminum producer in the World, but slowdown in consumption of the light metal has been forcing China to increase export in the world market. Increasing import of low cost aluminum from China and the Middle East countries has posed a serious challenge to the Indian producers, said Mr. Satish Pai, Deputy Managing Director of Hindalco, India’s top Aluminum producer.

He added that while China has cut power tariff by 15% in the last few months to aid its Aluminum Industry, the Indian side is struggling to cope with the rising power cost. Power cost contributes about 40% of the production cost of Aluminum, the rising power tariff making Indian Aluminum Industry uncompetitive. On the other hand, high freight cost has also been impacting the competitiveness of the industry.

Speaking on the occasion, Nalco CMD, NR Pattnaik said that slowdown in the Chinese and the world economy, low demand and price has posed a serious threat to the entire non-ferrous metal sector. Only through creativity, innovation and re-engineering the industry can overcome the challenge.

Speaking on the occasion, Vedanta Group President, Mukesh Kumar said that owing to low demand and oversupply world aluminum prices has currently touched the bottom to USD 1,634 levels from USD 2,900 six years back. Instead of producing intermediate products like Alumina or finished product like Aluminum, Indian Aluminum Industry should focus more on value added products like Roll products, Coils and Aluminum Alloys to remain competitive in the market.

The two day event is organized by Kolkata based organization Corporate Monitor and has been well attended by delegates from leading Aluminum and other non-ferrous metal industry.