Weak LME prices to squeeze aluminium output growth to 3.7% from 8.9%

Brownfield ramp-ups ruled ou in near term with three top producers - Hindalco, Vedanta and Nalco - running at near peak capacities

After registering 8.9 per cent growth in last fiscal, primary aluminium production is slated for a muted performance in FY20.

Production growth of the white metal in this fiscal year is expected to go up only by 3.7 per cent, a forecast by CARE Ratings said. Subdued aluminium prices on the London Metal Exchange (LME) and the fact that three primary producers - Hindalco Industries, Vedanta Ltd and state-controlled entity Nalco Ltd - are running at near peak capacities will rule out brownfield ramp-ups in the near term.

“We can expect further capacity ramp-ups of aluminium smelters only if the price of