A shortage of coal, coupled with a shortfall in rail rakes, is significantly pushing up production costs for domestic primary aluminium manufacturers. The cost of power accounts for 45 per cent of the total cost for the industry.
Amid falling prices of aluminium and pressure to keep costs low, cheap scrap import has been breaking the industry’s backbone, according to a leading aluminium company official.
The official of a large aluminium producing company said that they had seen price levels of $1,900 per tonne for aluminium earlier, too. However, he added, raw material supply and logistical issues were never a problem and these issues were making the fall in price look more painful. Read More