India's NALCO may cut output as stocks swell-paper

NEW DELHI, March 23 (Reuters) - India's state-run National Aluminium Co plans to lower output if inventory levels keep rising due to flagging demand for aluminium, the Business Standard newspaper reported on Monday, citing an anonymous source. "We plan to cut production when our inventory level crosses 30,000 tonnes," the paper reported cited an unidentified highly placed executive as saying. The company's aluminium stocks have swelled to 20,000 tonnes from a usual level of 5,000 tonnes as demand has waned, the paper said. Barclays Capital has cut its 2009 forecasts for aluminium because of falling global consumption due to bleak economic growth prospects this year. Barclays cut its forecast for cash aluminium traded on the London Metal Exchange to $1,425 from $1,500. [See: nLK247602] (Reporting by Mayank Bhardwaj; Editing by John Mair)