ALUMINIUM

GENERAL CHARACTERISTICS

Aluminium, the third most abundant element in the Earth’s crust, was first established as existing in 1808. It is commonly found in stable combinations with other materials, such as silicates and oxides.

Aluminium possesses several advantageous characteristics:

• Lightness: Its density is only one third that of steel.
• Resistance: It is resistant to weather, common atmospheric gases, and a wide range of liquids.
• Reflectivity: Aluminium has high reflectivity, making it suitable for decorative uses.
• Elasticity: It maintains toughness even at low temperatures, without becoming brittle like carbon steels.
• Workability: Aluminium is easily worked and formed.
• Conductivity: It conducts electricity and heat nearly as well as copper.

SUPPLY AND DEMAND GLOBAL SCENARIO

Aluminium ore, primarily bauxite, is abundant and mainly found in tropical and sub-tropical regions such as Africa, the West Indies, South America, and Australia. Leading producing countries include the United States, Russia, Canada, the European Union, China, and Australia.

The largest aluminium markets are in North America, Europe, and East Asia. Global production was approximately 27.7 million tons in 2003 and increased to 28.9 million tons in 2004.

INDIAN SCENARIO

India ranks as the fifth largest producer of aluminium globally. The country possesses substantial reserves of bauxite, estimated at about 3037 million tonnes. India’s reserves account for 7.5% of the total deposits worldwide.

With an annual consumption of around 6.18 lakh tons, India’s aluminium industry is self-sufficient and has export potential. Annual exports amount to about 82,000 tonnes. Liberalization of trade has led India to emerge as a net exporter of aluminium.

The primary Indian aluminium producers include BALCO, NALCO, HINDALCO, and MALCO. Private sector participation has increased, with HINDALCO emerging as a major producer after acquiring INDAL.

WORLD ALUMINIUM MARKETS

Key international markets such as LME, TOCOM, SHFE, and NYMEX play a crucial role in determining aluminium prices.