Nalco's exports dip 20% in 2008-09

NEW DELHI: Nalco has reported a 20% decline in aluminium exports in 2008-09 amid slackening demand in the wake of the global economic and industrial downturn. The exports of the country’s second largest aluminium producer fell to 82,000 tonnes from 1.02 lakh tonnes in the previous year. “We pushed for more domestic sales (during the fiscal) as it was relatively lucrative than the export market, which led to a decline in our shipments,” Nalco director (finance) BL Bagra said. Not only did the company’s exports shrink, the sales realisation too took a beating as commodity prices crashed by 70% over the last six months, he added. “Price recovery has been low. Aluminium prices went down to $1,200 a tonne during the January-March period,” Mr Bagra said. Though the London Metal Exchange (LME) sets the benchmark for metal prices, global buyers preferred purchasing the commodity locally to avoid paying import duty and logistics costs, one of the reasons for the dip in Nalco’s exports.