Aluminium is one of the most widely used industrial raw materials all over the world. Known for its lightweight and corrosion resistance, Aluminium is an important material used in a wide spectrum of industries ranging from aerospace, engineering, transportation, logistics and construction. Mainly derived from bauxite ore, Aluminium is mainly found in tropical and sub-tropical regions in the world.

Global Demand

Global production of Aluminium is estimated to be 33 million ton in 2006. China, Russia, India, US, Australia, New Zealand, Brazil and Venezuela are the leading producers of Aluminium. Global consumption of Aluminium is estimated to register a growth 4 percent to 35 million tons in 2007. China is a leading consumer with 8.2 million tons in 2006 accounting for nearly a quarter of global consumption. Chinese consumption is projected to rise to 9.1 million tons in 2007.

Indian Situation

India is rated as the fifth largest producer of Aluminium in the world. Production capacity is expected to increase with the completion of 35,000 ton per year smelting capacity at Hindalco and 245,000 ton expansion by Balco by the end of 2006. Annual consumption of India is projected to reach 780,000 tons in 2007 compared with 618,000 ton. India also exports around 82,000 ton of Aluminium per year.

Global Price Situation

In the first eight months of 2006, global prices of Aluminium rose by 35 percent to an average of US $2,520 per 1 ton compared with the previous year. Demand from China was the main trigger for the rise in price. Firm trend in global prices situation is unlikely to continue in 2007 on projected production overtaking consumption. Anticipation of slow down in global economy, especially fall in the US consumption may also keep Aluminium weak.

LME, NYMEX, TOCOM, SHFE are the leading centres of global aluminium trade.