Aluminium prices are expected to remain stable at current levels without any steep increases in the coming months, according to the Aluminium Association of India (AAI).

Prices are expected to hover between $2,200 and $2,500 in the coming months.

The AAI, which is hosting the three-day International Conference on Aluminium in Hyderabad from December 6 has estimated that the domestic aluminium sector will see an investment of Rs 120,000 crore till 2015, as aluminium manufacturers go in for expansion of capacity.

Aluminium production is expected to go up from the current 1.8 million tonnes to 5 mt by 2017 and 10 mt by 2020.

Surplus

AAI however feels that India may face an aluminium surplus by 2013, a subject that will be discussed at the international conference.

“Another issue that will be discussed is China exporting the metal to India at prices even lower than the LME prices. We will appeal to the Government to impose some safeguard duties to check the cheap Chinese imports,” Mr K.S.S. Murthy, Honorary General-Secretary of the association told mediapersons here on Friday. He said the association was planning to bring out a prototype of an aluminium-intensive bus to encourage more aluminium consumption in the public transport system, as use of this metal would result in considerable fuel savings.

The conference will also discuss the need for India to ban export of bauxite for the benefit of the domestic industry. India has the fifth largest bauxite reserves in the world.

“During the conference, AAI will enter into a MoU with the Aluminium Association of America for better interaction between the two industries for technology transfer and marketing,” Mr Murthy said.

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