At present, the company exports around 25 per cent of its total aluminium output of approximately 1.3 million tonnes annually. The six countries of the Gulf Cooperation Council (GCC), with a combined capacity of 6.5 million tonnes, account for over 8 per cent of global primary aluminium production. As the region exports 5 to 5.5 million tonnes of its produced aluminium, it indicates the impact of ongoing geopolitical disruptions at a primary supply base on the global market at large.
Aluminium prices have improved amid supply constraints at the Strait of Hormuz, surpassing USD 3,500 per tonne recently, with the current quarter average at about USD 3,170 per tonne, compared to USD 2,830 per tonne in the previous quarter. The upward trend of prices is expected to support Hindalco’s earnings outlook.
"With aluminium prices in the range of USD 3,400-USD 3,500, we are very well-placed," Pai mentioned.
Hindalco denies the extruded aluminium production halt
On March 16, Hindalco clarified that its Aluminium Extrusions business continues to operate normally, dismissing reports of a production halt due to gas shortages.
