The Indian aluminium sector is characterised by large integrated players like Hindalco and National Aluminium Company (Nalco ) and Bharat Aluminium (Balco), a subsidiary of Vedanta Resources.
Exports from the country increased by 36 per cent in 2018, aided by global demand, which outstripped supply. A spurt of 21 per cent in the commodity's prices on the London Metal Exchange (LME), the US sanctions on UC Rusal, one of the largest producers and over-supply to the domestic market helped exports to rise in the last financial year and the trend is expected to continue in 2019.
According to a report by CARE Ratings, India's aluminium production is forecast to be stable at 3.42 million tonnes in this financial year.
However, imports, especially of aluminium scrap, continue to nettle Indian producers. Scrap imports recorded a spurt of 20.4 per cent in 2018 to 1.12 million tonnes. A low import duty of 2.5 per cent is driving imports.
In the same period, imports of the white metal tanked 14.7 per cent to 360,000 tonnes.
South Korea accounted for the largest export of Indian aluminium products .