Hindalco, NALCO weak as 2009 aluminium demand seen down 2%

MUMBAI: With demand for aluminium expected to decline 2 per cent globally in 2009 after falling 3 per cent to about 36 million tonnes in 2008, shares of Hindalco Industries and NALCO opened lower on the BSE on Thursday. Hindalco was lower by 4 per cent at Rs 48.85 and NALCO down 5 per cent at Rs 176. Analysts maintain that there is very little good news for the sector. Around 40 per cent of the aluminium capacity in the world today is loss making. This has resulted in some big players like Alcoa, Rio Tinto Vale, and the Chinese Chalco cutting down on production. Alcoa, the biggest producer of aluminium in US with revenues of $26.9 billion, posted a net loss of $1.19 billion in the December 2008 quarter, which is another definite dampener. --economictimes.indiatimes.com