Domestic Aluminium use to increase by 10 pc

New Delhi, July 24: Consumption of Aluminium will increase by 10 per cent per annum during 2006-07 driven by robust demand from the end-user segments, according to an industry report.

''The domestic sector outlook remains impressive both in the immediate and the long term with growth in the electrical, automotive, construction and packaging sector,'' said the report.

During FY2006 domestic aluminium market saw a growth in demand by 15 per cent particulraly from power, automotive and housing sectors.

The electrical sector has been the largest consumer of aluminium, accounting for 31 per cent of Aluminium consumption. The demand from the sector has been growing at 10 per cent per annum and the recent government initiatives of creating an atmosphere for investment has inxcreased it even more, an ICRA report said.

It also said that with India fast becoming the global hub for automobiles and auto components, this sector which is the second largest user of aluminium will raise domestic demand siginificantly.

During FY2006 aluminium production in India was 0.602 MT of which 0.513 MT was supplied in the domestic market and 0.110 MT was exported. The per capita consumption of auminium in the country is 0.7 Kg per annum.

Meanwhile, world demand for aluminium is expected to increase 5 per cent during 2006 to 33 MT reflecting continued continued strong demand growth in China and the US.

UNI