Hindalco hikes prices, Nalco may follow suit

The Aditya Birla group-owned Hindalco Industries has raised its aluminium product prices by Rs 2,500 a tonne with immediate effect. This is the second price revision by the company this month following the Rs 3,500 a tonne hike on February 1.

Speculations are rife that National Aluminium Company (Nalco) would follow suit, though the state-owned company's pricing committee is yet to deliberate on the move.

Despite aluminium prices losing steam on the London Metal Exchange (LME), domestic producers are upbeat as local demand is bullish, a Nalco source said.

Power and construction sectors are driving demand. More importantly, imports have trickled down. Hence, the current price rise can be attributed to rising domestic demand, the source added.

Domestic aluminium producers revise prices based on the LME movement. Although producers change prices once a month, this month has seen three price revisions.

"Aluminium prices are revised on the average price of aluminium on LME for the month to date and current prevailing duty in the country. Demand-supply scenario in the country is also taken into consideration," a Hindalco source said.

While Nalco and Hindalco set the benchmark selling price in the country, Bharat Aluminium Company, Madras Aluminium Company and Indian Aluminium Company follow suit.