Weak forecast for aluminium prices to affect domestic producers next year

Aluminium prices are expected to soften by 1.7% in 2020 after an expected decline of 15.1% in calendar 2019

A bearish forecast for aluminium prices in calendar 2020 is likely to rattle domestic producers. Fragile prices on the London Metal Exchange (LME) during 2019 have already disconcerted primary producers like state-run National Aluminium Company (Nalco), Hindalco Industries and Vedanta Ltd.

A World Bank Commodities report says aluminium prices have dropped by 1.7 per cent during July-September 2019, marking the fifth consecutive quarterly decline.

“Concerns about raw material (alumina) supplies have eased as the world’s largest alumina refinery, Alunorte in Brazil, resumed operations in May after a 14-month court-ordered stoppage. The impact from China’s red mud spill in May in