LME prices prompt Nalco to cut prices

National Aluminium Company Ltd(Nalco) is soon going to downwardly revise its metal prices as the LME prices weakening very fast. With the metal prices in international market slipping down by about $600 since July 11, 2008, Nalco is proposing to adjust its prices in coming seven days. The metal prices has fallen from $3341 per tonne on July 11, 2008 to $ 2766 on the week that came to a close. The cash settlement price of the metal has been quoted at $2716 on August 15, a sharp fall from $ 3291 on July 11, 2008. Aluminium prices hovered over $3000 continuously for a record three months period as compared to a short period in May 2006. Nalco, a couple of months back, had revised its prices taking into consideration the high LME prices. However, the market is not able to sustain the present prices. Nalco is expected to revise the prices with an aim to sustain it for a longer period. The central sector aluminium behemoth adjusts prices on quarterly basis taking into account the LME prices of metal. Nalco, which produces about 3.51 lakh tones of metal exports over 1 lakh tones and sales in the domestic market about 2 lakh tones. Source: financialexpress