Aluminium makers stare at piling inventory following Covid-19 outbreak

In the domestic market, flagging demand, slowing pace of production and tumbling exports have unnerved the primary producers

Indian aluminium producers are staring at the possibility of stockpiling of metal as Covid-19 pandemic has squeezed domestic consumption besides leading to a demand contraction among importing countries.

The situation is a double whammy for the aluminium firms who were already grappling with weak commodity prices.

Globally, many major auto companies have cut production. Construction activity, too, has come to a standstill. While demand from user industries has weakened, production of aluminium is expected to outpace demand which will exert pressure on aluminium prices unless substantial production cuts are announced by smelters in China and the rest of the word, a study