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Nalco expects aluminum demand to grow between 5% and 6% with short-term fluctuations

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Nalco expects aluminum demand to grow between 5% and 6% with short-term fluctuations

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National Aluminum Company Limited (NALCO) expects aluminum demand to grow 5 to 6 percent, Sridhar Patra, president and managing director (CMD), told CNBC-TV18.

Aluminum shares rallied on October 18 as the global aluminum market has seen a huge uptrend thanks to comments from Alcoa (the world’s eighth largest aluminum producer). Alcoa was up 15 percent in response to its numbers, so aluminum stocks were a big talking point yesterday. Additionally, Credit Suisse has also said that it remains more bullish on aluminum in the base metals package.

“With the reduction in production by large companies (such as China and the European Union) and the reactivation of the industry after the COVID-19 pandemic, it has resulted in a large gap, which has pushed prices up . Long-term demand will have a compound annual growth rate (CAGR) of 5 to 6 percent expected and, in the short term, could have some fluctuations, but in the long term there will be demand throughout. the world from 5 to 6 percent. ”Said the NALCO CMD.

The gap between supply and demand for aluminum has widened due to production cuts in China.

“At present, the gap between supply and demand has widened due to a certain reduction in production by large companies. China accounts for between 50 and 55 percent of world production and consumption it represents. Now, due to the coal crisis, prices have increased by 10 percent and production has also decreased, ”said Patra.

For the full interview with management, watch the video

(Edited by : Abhishek Jha)

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Nalco expects aluminum demand to grow between 5% and 6% with short-term fluctuations

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