Aluminium prices are going to remain between the $2100 and $2300 range largely because of uncertainty of the Chinese economy, said Satish Pai, MD of Hindalco Industries
Power costs are about 25-30% of the total expenses for aluminum companies, and the recent reduction in coal prices is expected to boost operating profit. From an all-time high of more than $450 per tonne last year after Russia s invasion of Ukraine and higher usage by Europe, thermal coal prices are now at their lowest level in more than two years.
Prices of domestic coal used for generating power have not been revised in the past five years. Coal India chairman and MD Pramod Agrawal said the company is looking at linking fuel prices with parameters so that smooth price increase can happen in future.