Surging global prices to delay MIP relief to Indian aluminium cos

Aluminium prices rising over USD 1900 per tonne on the London Metal Exchange may delay imposition of a minimum import price (MIP) by the government on the aluminium imports.

The MIP would have come as a relief to the domestic aluminium producers as the aluminium imports surged by 23 per cent to 909,000 tonne in April-September period of FY17. The imports being sourced mainly from China, Vietnam, Thailand and Malaysia as an outcome of India's free trade agreement with these countries.

However, following the global trends, local aluminium prices have surpassed the proposed MIP of USD 1,996 per tonne for primary aluminium products. The industry had earlier proposed MIP for a period of six months on primary and secondary aluminium products.

Furthermore, slowdown in global demand and metal dumping by Chinese companies have pressurised the aluminium prices and intensified the competition, majorly affecting the companies' profits.

Closing at Rs 67.15, NALCO is down by 0.22 per cent, while, Hind Aluminium closed at Rs 98, down by 1.06 per cent on the BSE. However, Hindalco closed at Rs 191.85, up by 0.60 per cent.