Commodity reported that Hindalco was worried about the concerns of high inflation in the recently released investor update for financial year 2011.
The Aluminium major said that the key concerns in the markets are inflation and Reserve Bank of India rate actions. The project activity in India has moderated due to lower liquidity.
Aluminium consumption rose by 14% in FY 2011 to 2137000 tonnes as compared to 1877000 tonnes in FY 2010. The growth rate of consumption moderated in the second half of FY 2011 to 8% from 20% in the H1 of 2011. Meanwhile, Refined Copper consumption in FY 2011 declined to 374000 tonnes as against 383000 tonnes in FY 2010 down 2.3%.
The key concerns of sovereign debt and its further spread to other economies will test the recovery process of the company. Geopolitical concerns and higher inflation will be another laggard for the prices. Another concern was the increase in Electricity prices in China.
In metals markets, MCX Aluminium prices were seen trading at INR 118.3 per kilogram up 0.7%. Copper was trading at INR 410.7 per kilogram up 1%.
Sourced from Commodity Online