While the world’ top Aluminium producers like Alcoa and Rusal are curtailing production owing to low demand and a oversupply market, public sector Aluminum major, NALCO is not looking to curtail its production level in the remaining months of the financial year.
“We have no plans to curtail production in spite of the fact that there is little hope for recovery of prices and demand in FY16. Prices in international market have come down to a record low and due to this profit margin has reduced drastically and difference between our cost of production and selling price has narrowed to USD 150-200/MT,” said Mr. Tapan Kumar Chand, CMD NALCO.
Aluminum price for cash buyers in the London Metal Exchange (LME) has closed at USD 1,560/MT on Saturday.
Nalco has been regarded as a low cost producer of the white metal, thanks to its captive Bauxite mines. Also, allocation of Utkal-D and E coal block will further lower its cost of production. Nalco is investing INR 10 bn to develop these blocks within the next two years.
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