Aluminium output stable despite volatile market

The recent volatility in the non-ferrous metals market has not shown signs of affecting aluminium production levels in key production centres around the globe.

For instance, in the Asian region aluminium production was at 2,94,000 tonne in May as compared with 2,62,000 tonne in May last year, according to the London-based International Aluminium Institute (IAI). The Asian countries include India, Japan and Indonesia.

Meanwhile, global production amounted to 2.02 million tonne in May compared with 1.98 million tonne in May 2005, according to IAI. Aluminium production in Asia in April 2006 was at 2,85,000 tonne as compared with 2,43,000 tonne last year.

Aluminium is currently quoting $2,450 per tonne on the LME down from $3,270 on May 11 this year. It was at $2,270 at the beginning of the calendar year.

The weakness in aluminium prices is attributed to a sell-off by hedge funds coupled with the gradual easing of prices of key input alumina.

Spot alumina contracts have been struck recently at $530-535 a tonne as compared to $615- 620 a tonne a month earlier, say metal analysts.

Weakness in alumina prices is due to rising production at 14.14 million tonne in January-March of the current year as compared with 13.87 tonne in the same period last year, says IAI.

Meanwhile, user industries have adopted a wait-and"�watch attitude given higher prices of aluminium.

Aluminium inventories in Asia amounted to 4,11,000 tonne in April 2006 compared with 2,90,000 tonne in April 2005, according to IAI.