Nalco expects lower sales in Q4

State-run aluminium producer Nalco expects to record lower sales in the fourth quarter of the last fiscal compared to the three-month period ended December 2008, due to a sharp fall in aluminium prices amid the global industrial downturn.

"Fourth quarter sales will be gloomy than third quarter. Price recovery has been low as aluminium prices went down to $1,200 a tonne during the January-March period," Nalco Director Finance B L Bagra told PTI over phone.

Globally, aluminium prices had plummeted by over 70 per cent from $3,800 a tonne last year due to waning demand as the world economy witnessed a slowdown.

The state-run firm said it saw its offtake improving in the fourth quarter especially from the domestic cable firms.

"In terms of quantity, our sales have been fine in India as well as abroad. Lower price realisation is our concern," he said, adding that the situation is expected to improve in an year's time, with the likely decline in the global inventory levels.

The London Metal Exchange monitored aluminium inventories are at present "historic highs" of 3.46 million tonnes, said Karvy Comtrade's Vishal Maniyar.

Faced with both falling demand and a dip in prices, Nalco posted a 33 per cent decline in its net profit at Rs 219.46 crore for the quarter ended December.