However, the outlook for secondary aluminium producers is expected to be positive, given a robust beverage can market.
Global aluminium markets reeled from a deficit of 0.07 to 1.01 million tonnes (mt) for the last nine quarters due to production cutbacks in China. In India, aluminium production
showed an uptrend during the second half of calendar 2018 but scaled back between March and June 2019 owing to shutdown of some loss making capacities.
In 2018-19, the country's aluminium demand expanded by 10 per cent, propped up by firm GDP and growth in aviation, automobiles, infrastructure and electrical sectors. But a slowing economy and flagging demand has unnerved the alumimium makers.
Also, LME prices of alumium having been trading at tow-year lows for the past four months. Currently, aluminium price on the LME has sunk to $1713 per tonne for the cash buyer (as on October 24).
On a global context, trade wars to debilitate aluminum demand growth with CY 2019 consumption growth in China expected to drop to 1–1.5 per cent versus earlier expectations of 1.75–2.25 per cent.