Alcoa expects the automotive sector to now grow by 4-8%, down from 5-11% projected during the March quarter, and commercial building and construction to grow at 1-3%, compared with 2-3%

Aluminium prices have risen sharply from over a year ago, and are up by around 24% on the London Metal Exchange (LME), but that rise has been blunted in recent months. Since the beginning of June, its price is down by around 7%. Since domestic aluminium prices track international prices, the effect has been also felt locally.

The Reuters news agency recently reported that National Aluminium Co. Ltd (Nalco) has cut prices by around Rs. 3,000 a tonne, following up on a Rs. 5,000-a-tonne cut in prices in June. There is no buffer from foreign exchange rates either, as the rupee is up by around 5% from a year ago against the dollar. The rising cost of inputs such as coal and fuel adds to the worry for aluminium companies.