The up-rise in primary aluminium export has supported the industry producers of the metal to cushion a rapid plunge in domestic demand amid the COVID-19 outbreak, as per the Crisil Research report.
Crisil report indicates: “Primary aluminium exports rose by 50% in the first quarter of the current fiscal and constituted over 75% of the total production of the commodity.”
“Among the destinations, the exports have surged to countries that have had early success in containing the pandemic, such as China, South Korea and Malaysia”, it said.
However, the report also reflected that exports to china blown with mammoth 4500% on-year the low base.
"On the domestic front, primary aluminium demand is estimated to have plunged 45-50% on-year in the first quarter following the nationwide and local lockdowns to contain the COVID-19 pandemic," the report said.
Yet, the Crisil research illustrated most smelters were operational during the entire lockdown period. India’s primary aluminium production dipped just 5% on-year during the quarter, with utilisation levels largely unchanged. Primary aluminium production is a continuous process and categorised under essential services.
During the second half of fiscal 2020, when China imposed a ban on its scrap imports, primary aluminium export of India saw the rise.
"Following the ban, excess scrap in global markets is being redirected to India, leading to a surge in scrap imports and increased scrap blending, further straining the weak domestic demand for primary aluminium," the Crisil Research said.
Responses
.jpg/82/0){kind=logo}
