1. DERIVATING TRADING

2. GENERAL CHARACTERISTICS
• ALUMINIUM (CHEMICAL SYMBOL - AL) IS THE THIRD MOST ABUNDANT ELEMENT PRESENT IN THE
EARTH'S CRUST. IT EXISTS IN A VERY STABLE COMBINATION WITH OTHER MATERIALS
PARTICULARLY SILICATES AND OXIDES.
• IT IS RESISTANT TO COMMON ATMOSPHERIC GASES AND A WIDE RANGE OF LIQUIDS. HENCE,
ALUMINIUM IS KNOWN FOR ITS DURABILITY AND HIGH RESALE VALUE.
• ALUMINIUM IS A UNIQUE METAL; WHICH IS LIGHT WEIGHT, STRONG, DURABLE, FLEXIBLE, AND
IMPERMEABLE. IT IS RUST RESISTANT AND IS 100% RECYCLABLE.

3. APPLICATION
• ALUMINIUM’S UNIQUE CHARACTERISTICS MAKE IT A HIGHLY ATTRACTIVE METAL. IT IS PRIMARILY
USED IN TRANSPORTATION, PACKAGING (CANS), DEFENCE AND CONSUMER ELECTRONIC
INDUSTRIES. ITS HIGH STRENGTH-TO-WEIGHT RATIO MAKES IT SUITABLE FOR THE
CONSTRUCTION OF AIRCRAFTS, CARS AND TRAIN CARRIAGES. TRANSPORTATION EQUIPMENT
AND BUILDING CONSTRUCTION ACCOUNT FOR AROUND 50% OF ALUMINIUM
CONSUMPTION.

5. GLOBAL DEMAND-SUPPLY SCENARIO
• IN 2012, GLOBAL PRIMARY ALUMINIUM PRODUCTION WAS 40.974 MILLION METRIC TONNES
(MMT), UP FROM 39.930 MMT IN 2011.
• GLOBAL PRIMARY ALUMINIUM CONSUMPTION ROSE TO 48.075 MMT IN 2012, COMPARED
WITH 44.594 MMT IN 2011.

7. INDIAN DEMAND-SUPPLY SCENARIO
• CURRENTLY, INDIA IS THE FIFTH LARGEST PRODUCER OF ALUMINIUM IN THE WORLD WITH AN
AVERAGE ANNUAL PRODUCTION OF 171,3924 MT.
• INDIAN ALUMINIUM INDUSTRY CONSISTS OF FOUR PRIMARY PRODUCERS: HINDALCO, NALCO
(A GOVERNMENT OF INDIA ENTERPRISE), BALCO, AND VEDANTA ALUMINIUM ARE THE FOUR
MAJOR ALUMINIUM PRODUCING COMPANIES IN INDIA.

8. GLOBAL SCENARIO
• WORLD PRIMARY ALUMINUM PRODUCTION INCREASED IN 2012 COMPARED TO THE
PRODUCTION IN 2011, AS A RESULT OF STARTING NEW SMELTERS AND RESTARTING SMELTERS
THAT HAD BEEN SHUT DOWN IN 2008 AND EARLY 2009.
• MAJOR ALUMINIUM EXPORTING COUNTRIES ARE GERMANY, RUSSIA AND CANADA, WHILE
MAJOR ALUMINIUM IMPORTING COUNTRIES ARE USA, GERMANY AND CHINA.

10. FACTORS INFLUENCING THE MARKET
• ALUMINIUM PRICES IN INDIA ARE FIXED ON THE BASIS OF THE RATES THAT RULE ON THE INTERNATIONAL SPOT MARKET,
AND INDIAN RUPEE AND US DOLLAR EXCHANGE RATES.
• ECONOMIC EVENTS SUCH AS NATIONAL INDUSTRIAL GROWTH, GLOBAL FINANCIAL CRISIS, RECESSION, AND
INFLATION AFFECT METAL PRICES.
• COMMODITY-SPECIFIC EVENTS SUCH AS THE CONSTRUCTION OF NEW PRODUCTION FACILITIES OR PROCESSES, NEW
USES OR THE DISCONTINUANCE OF HISTORICAL USES, UNEXPECTED MINE OR PLANT CLOSURES (NATURAL DISASTER,
SUPPLY DISRUPTION, ACCIDENT, STRIKE, AND SO FORTH), OR INDUSTRY RESTRUCTURING, ALL AFFECT METAL PRICES
• TRADE POLICIES SET BY THE GOVERNMENT (IMPLEMENTATION OR SUSPENSION OF TAXES, PENALTIES, AND QUOTAS)
AFFECT SUPPLY AS THEY REGULATE (RESTRICTING OR ENCOURAGING) MATERIAL FLOW
• GEOPOLITICAL EVENTS INVOLVING GOVERNMENTS OR ECONOMIC PARADIGMS AND ARMED CONFLICT CAN CAUSE
MAJOR CHANGES
• AS SOCIETIES DEVELOP, THEIR DEMAND FOR METAL INCREASES BASED ON THEIR CURRENT ECONOMIC POSITION,
WHICH COULD ALSO BE REFERRED AS ‘NATIONAL ECONOMIC GROWTH FACTOR’.

14. •THANK YOU……..