Acute coal shortages in India are beginning to take their toll on the country’s aluminium producers, as several of the major aluminium firms are unable to obtain sufficient quantities to keep captive power plants in operation.
According to the Aluminium Association of India, the majority of the country’s smelters are facing power shortages, as their power plants typically only have half a day’s worth of coal on hand at any one time. The Association delivered a written appeal to India’s prime minister and the head of its Coal Ministry but, as yet, the petition has fallen on deaf ears.
If coal supplies to aluminium producers continue to be as tight over the remainder of the fiscal year as they have been to date, experts believe aluminium operations will bear the brunt. Jayanta Roy, senior vice-president and group head of corporate ratings at ICRA Limited (ICRA), told Bloomberg earlier this month that profitability will suffer despite the continuing recovery of the global aluminium sector. Read More…
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