Rising input costs, soft LME prices to dent aluminium makers' profits

Data from the Directorate General of Commercial Intelligence and Statistics shows Chinese aluminium import into India having risen 62% year-on-year in the first eight months of this fiscal

A spike in costs of key ingredients, with bearish London Metal Exchange (LME) prices, threaten to cut margins of Indian aluminum makers in the near term. LME aluminium prices had fallen to $1,775 a tonne on Monday, after scaling a seven year-high of $2,718 last April. The trend is disquieting for the three primary Indian producers — National Aluminium Company (Nalco), Vedanta and Hindalco Industries. Their smelting cost is around $2,000 a tonne.
 
“The cost of production of smelters with own alumina will be below $2,000 but still affect the profitability. Other than input prices coming down, we do