NALCO profit to rise on prices and output

Bloomberg reported that National Aluminium Co Q1 profit will increase from the previous 3 months, aided by higher production and prices of the metal used to make aircraft and beverage cans. Mr CR Pradhan chairman of National Aluminium Co said net income will exceed the INR 830.2 million posted in the Q4 ended March 31st. Aluminum prices are expected to stabilize at about USD 1,500 a metric tonne and rise to USD 1,800 tonne in a few months. Mr Pradhan said “Signals that China’s consumption is raising is good news for the industry. Globally the outlook is becoming more positive.” He said Nalco is raising its annual production to 435,000 tonnes from about 360,000 tonnes a year ago. The output of alumina, the key aluminum making material, may increase to 1.86 million tonnes from an estimated 1.62 million tonnes. He further added that the company is scouting for coal mines in Australia to secure supplies of the fuel. National Aluminium is also in talks with companies in Indonesia to form coal mining ventures in the country without elaborating. Aluminum’s open interest, or the number of futures contracts outstanding, jumped to a record on the London Metal Exchange, signaling prices may gain. Exchange open interest, reflecting the number of positions held by members of the LME advanced to 809,861 on June 2nd. (Sourced from Bloomberg)