Hindalco flags coal shortage, expects 5% rise in aluminium production costs
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Hindalco Industries flagged coal supply constraints at its northern India smelters, pushing aluminium production costs up.
- ✓Managing director Satish Pai said on Friday that costs will rise 5 per cent in the December quarter.
- ✓"As a result, we had to buy a lot of spot auctions where the prices were very high."
Story at a Glance
- Category
- Indian Markets
- Reported By
- Business Standard
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
Hindalco Industries, part of the Aditya Birla Group, has flagged coal supply constraints at its aluminium smelters in northern India, with inventories at two facilities falling to nearly half their normal levels, highlighting the impact of tight coal availability on industrial consumers.
The metals company expects aluminium production costs to rise another 5 per cent sequentially in the December quarter, after a similar increase in the September quarter, managing director Satish Pai said on Friday during a media interaction post the company's Q2 results for FY27. He said the company is still seeing tight coal availability in the northern region during October and November with easing expected in the fourth quarter.
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