India strengthens its position in the global aluminum market

Aluminum production in India is set to grow at an average annual growth rate (CAGR) of 3.5% over the next 2-3 years to meet growing domestic demand, according to a published report.

India is one of the cheapest aluminum producers in the world due to the easy availability of raw materials and relatively low labor costs. The growing demand for aluminum in the last decade, driven by the growth of the Indian economy, which has led to the expansion of the smelting capacity of the main domestic players.

With the addition of new aluminum capacity, India is striving not only to meet domestic demand, but also plays an important role in the global aluminum market.

A CARE Ratings report titled "The Aluminum Industry: The Silver Knight of the Economy" says that various initiatives by the Indian government and smelter capacity expansion will be undertaken for this growth. Surplus inventory will continue to be exported due to its low cost advantage.

According to CARE, the growth in consumption is likely to be driven by growth in power transmission and the automotive sector. While demand from the construction and construction and consumer long-term segment is likely to remain subdued, demand from the packaging sector is likely to support domestic demand.

CARE estimates that LME aluminum prices will range from $ 1,800 /t to $ 2,000 /t in the short and medium term.