Aluminum production increased by 18.2 percent to 915 kilotonnes in last quarter

The domestic primary aluminum production has increased by 18.2 percent to 915 kilotonnes (KT) in April to June quarter on account of better capacity utilization and addition, a report said today.

Production has increased despite the challenges like coal shortage during the monsoon and an increase in the prices of furnace oil, Care Ratings said in its report. Consumption of aluminum has also risen by 15.1 percent to 582 KT during June quarter, on the development of smart cities, rural electrification, focus on building renewable energy projects and growth in the transportation segment.

On the outlook for the aluminum sector, the rating agency said the country's aluminum demand is set to grow around 5 percent to 2,200 KT in FY19, driven by the growth in power transmission and the automobile sector.

Demand from the building and construction activities is also expected to pick up due to the affordable housing for all programme, whereas demand from the packaging sector is likely to support the domestic demand.

"The metal also continues to replace copper demand from the electrical and the consumer durable segment," it said. The production is expected to remain stable at 3,426 KT in FY19, against 3,392 KT in FY18, as all the domestic smelters are now operating at full capacity, it added.

Aluminium exports have risen by 15.9 percent in June quarter, while imports have declined by 6.9 percent, according to the report. India exported primary aluminum to South Korea, Turkey, Mexico, Italy, the US, Japan, and Greece, it said.

Globally markets faced a deficit as aluminum demand exceeded supply, Care Ratings said, adding this, in turn, has benefited India as aluminum is oversupplied in the domestic market.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)