After two years of demand surplus, the global aluminium industry likely to see a supply surplus in calendar 2023 amid capacity expansion and slower-than-expected global demand revival, especially from China and the European Union.
Moreover, domestic energy prices, which rose in fiscal 2023 following the Russia-Ukraine conflict, has cooled off this fiscal, resulting in lower input-cost pressure. In tandem, domestic aluminium prices have also moderated and remained rangebound for most part of the current fiscal.
The effect of reduced energy prices and range-bound aluminium realisations has meant domestic demand outpacing global demand. Consequently, profitability margins are expected to be better this fiscal compared with last. Further, domestic aluminium makers are undertaking capital expenditure - both upstream and downstream - to meet increasing domestic demand and cost efficiencies.
However, some macroeconomic headwinds could pose a challenge to the momentum.
In this context, CRISIL Ratings is organising a webinar on the Indian Aluminium sector, titled 'Navigating trajectory, striking a balance' where its experts will present insights on:
Outlook on global and domestic demand and supply
Views on aluminium and raw material prices, and outlook on operating margin
Outlook on capex, export and leverage of domestic aluminium makers
Credit outlook for primary aluminium producers
This will be followed by a panel discussion with industry experts and a Q&A session
Disclaimer: This event and its content are intellectual property and confidential information of CRISIL. Any use of the same without written permission of CRISIL is illegal and hence punishable. Recording the webinar in any form in full or part or copying, altering, distributing or streaming the webinar is strictly prohibited and violation will attract legal action.
