With high global demand, which surpassed supply, India’s aluminium exports jumped 36% in 2017-18. The Union commerce and industry ministry’s latest data showed that in volume terms aluminium exports rose to 1.66 million tonnes (MT) in 2017-18 from 1.22 MT at the end of 2016-17. In the comparable period, imports of the white metal tanked 14.7% to 360,000 tonnes.
The rise in exports supported by a spurt of 21% in the commodity’s prices on the London Metal Exchange (LME); US sanctions on UC Rusal, one of the largest producers; and over-supply to the domestic market. As per the data, South Korea accounted for the largest export of Indian aluminium products (31%), followed by Malaysia (30%) and the US (11%).
India’s production of primary aluminium grew 21% year-on-year in the last financial year, going past the 15.5% rise in 2016-17. The rise in aluminium production was on account of better operational efficiencies owing to enhanced capacity utilisation at existing smelters. The country’s primary aluminium production was 3.39 MT in 2017-18, while consumption was 2.08 MT.