India is among the lowest cost producers of aluminum in the world, owing to easy availability of
raw materials and comparatively low labour costs. The growing demand for aluminum in the last
decade, driven by India’s underlying growth , has resulted in expansion of smelting capacities of
the major domestic players.
With the addition of new aluminum capacities, India aims at not only satisfying domestic
demand, but also playing a major role in the global aluminum market.
India ranks fourth in terms of primary aluminum production, while China continues to be the
largest producer of aluminum, contributing 54% of total global production.
India’s Aluminium production is expected to grow at a compound annual growth rate (CAGR) of
3.5% in the next 2-3 years to cater to a rise in domestic demand, according to a research report.
And the prices of LME aluminum is expected to range around $1,800/ton to $2,000/ton in the
short- to medium-terms.