Business
Aluminium extrusion runs at 27-30 percent capacity
The Hindu BusinessLine··4h ago
India's aluminium extrusion makers are at about 27-30 percent of installed capacity, ALEMAI said. Production has fallen to 8-9 lakh tonnes from around 12 lakh tonnes, against about 30 lakh tonnes of capacity. President Jitendra Chopra said aluminium product imports have risen to around 15-16 lakh tonnes. The industry wants the 7.5 percent basic customs duty on primary aluminium removed.
Prism
What It Means For You
- Domestic extrusion plants report running near 27-30 percent of installed capacity.
- Industry group ALEMAI links the squeeze to imports of about 15-16 lakh tonnes.
- Makers are asking for the 7.5 percent basic customs duty on primary aluminium to be cut to zero.
What's Happening
- ALEMAI said production dropped to 8-9 lakh tonnes from around 12 lakh tonnes earlier.
- Installed capacity is about 30 lakh tonnes, president Jitendra Chopra said in Gandhinagar.
- He warned factories could close if the government does not act soon.
The cost pressure on downstream plants
- ALEMAI members include MSMEs and large players such as Hindalco, Vedanta, NALCO and Jindal.
- Cable and secondary makers said LME prices rose from around $2,200 to over $3,700 a tonne.
- A 10 percent social welfare surcharge on the duty takes the effective duty to 8.25 percent, they said.
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