Nalco expects its alumina and aluminium output to rise in FY 2016/17

National Aluminium Company (Nalco) expects its aluminium output to rise 3.5% by the end of FY 2016/17 in the face of growing domestic consumption and rising prices, as told by NALCO Chairman Tapan Kumar Chand to Reuters.

The state owned company will end the fiscal year with an aluminium output of 385,000 tonnes, about 3.8% higher than the 372,000 tonnes it produced in FY2015/16.

"Nalco is ramping up this production ... to take advantage of growing consumption in the domestic market, and ... to take volume variance," said NALCO Chairman Tapan Kumar Chand.  According to him it was the narrow profit margins that have prompted the company to increase production volumes to boost profits.

In order to increase the aluminium capacity, the company is raising its alumina output by 9.1% in FY 2016/17 to 2.13 million tonnes and the alumina refinery's capacity utilisation to 93.62% from 85.85%, Chand confirmed.

As Mr Chand said, Nalco had squeezed its alumina capacity as alumina refining is highly energy intensive and the cost of coal to feed its refinery and smelter increased enormously in recent times.

But "right now coal is available. You can say sunny days are ahead," he said.

Lower energy costs and stable LME prices are expected to help the company earn higher revenue and profits in the coming quarters.

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