Surge in alumina prices benefits domestic companies - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  
  • Home
  • Outlook Arena
  • Jan 6, 2000 - Surge in alumina prices benefits domestic companies

Surge in alumina prices benefits domestic companies

Jan 6, 2000

Indian aluminium producers are having a field day as international prices of alumina have soared from US$ 150 per tonne to US$ 350 per tonne in 1999. As a consequence, aluminium prices too have registered a sharp rise to US$ 1,614 per tonne. The rise in prices is likely to benefit the Indian alumina exporters most. This has been reported by a leading national daily. The international alumina prices have been witnessing an uptrend mainly due to the accident at Kaiser Aluminium, a leading manufacturer. This has created a supply gap in the market even as global demand for aluminum continues to register growth. The growth has been mainly due to a global recovery after a slowdown witnessed in 1998.

The Indian companies have been actively tapping the export markets to capitalise on the higher realisations. According to CMIE, exports of aluminium (other than products) grew by 489% (April - September) as against a decline of 78% registered in the corresponding period last year.

In light of the not so strong recovery in the domestic market, the move to tap the export markets will benefit the domestic manufacturers. The higher realisations will more than help in absorbing the rise in energy costs. The aluminium companies will benefit even more once the domestic economy gains further momentum.

The rise in aluminium prices in all probability will cool down once the Kaiser refinery commences production. Then onwards, the prices will be determined by the growth in demand rather than supply shocks. However, problems could arise if once again the global economy were to slow down. Then it would be cost control that would drive margins.

Equitymaster requests your view! Post a comment on "Surge in alumina prices benefits domestic companies". Click here!


More Views on News

Sorry! There are no related views on news for this company/sector.

Most Popular

My Recent Recommendation Will Profit from the Global Supply Chain Crisis (Profit Hunter)

Mar 31, 2021

A tiny chemical company, started in the Licence Raj era, is a great example of a new wealth creating opportunity.

My Stock Trading Strategy (Fast Profits Daily)

Mar 31, 2021

In this video I'll show you exactly how I go about picking stocks for trading.

4 Stocks to Make Your Portfolio Immune to the Second Covid Wave (Profit Hunter)

Apr 6, 2021

Rather than predicting the market, successful investing is more about preparing well and placing your bets accordingly.

If the Market Falls, I Will Do This... (Fast Profits Daily)

Apr 1, 2021

What should you do if the market falls? In this video, I'll tell you what I will do.

India: Recovery Stalled by Vaccine Games? (The Honest Truth)

Apr 13, 2021

Ajit Dayal on how India's vaccine strategy will impact the markets.


India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms


Apr 13, 2021 (Close)