Birla Said to Plan $1 Billion Aluminum Exports
(Minews) - Hindalco Industries Ltd., owned by Indian billionaire Kumar Mangalam Birla, is targeting a record $1 billion of aluminum exports by March 31 buoyed by rising U.S. and European demand, people with knowledge of the matter said.
Overseas shipments may triple to as much as 400,000 metric tons in the 12 months ending March 31 from the previous year, said two people, who asked not to be identified because they aren’t authorized to speak to the media. The Mumbai-based company had exported less than half the target as of the middle of last month, the people said.
Stricter emission norms in the U.S. and Europe are prompting vehicle makers to choose the lighter alloy over steel, helping the owner of the world’s largest supplier of aluminum sheets to carmakers boost overseas sales and counter a domestic slowdown. The additional demand will aid Hindalco revive profit growth after five straight quarters of decline and find a market for its new capacity.
“Hindalco will look to export if India demand doesn’t recover,” said Rakesh Arora, head of research at Macquarie Capital Securities India Pvt. “Spot premium ex-China is quite high. Every smelter in the world today is making money at current prices.”
Hindalco spokeswoman Pragnya Ram didn’t reply to an e-mail seeking a comment.
Publish date : Thursday 18 December 2014 17:54
Story Code: 18064
