Imports may rise if Chinese economy remains weak, says Hindalco MD Satish Pai

Weakness in the Chinese economy may trigger a rise in imports in India's metals industry, said Hindalco Industries' managing director Satish Pai, in a post earning interaction with reporters.

"We have started to see more imports coming in from China on the foils side. China tries to export more when their economy is not doing well. So yes, we have started to see imports from China going up. Right now we are seeing it in foils, but we remain worried that we will start to see it in other items as well if their economy doesn't pick up," Pai said.

Aditya Birla Group flagship Hindalco Industries Limited (Hindalco) reported a 40.4 percent decline in its consolidated net profit to Rs 2,454 crore for the first quarter of FY24 from Rs 4,119 crore recorded a year ago. On a sequential basis, the profit remained flat at 1.7 percent from Rs 2,411 crore earned during the January - March period. The company filed its Q1 FY24 earnings in the stock exchanges on August 8.

When asked about his outlook on aluminium prices, Pai told Moneycontrol that it is likely to hover between $2,100 and $2,300 per tonne. "I think aluminium prices are going to remain between the $2100 and $2300 range, largely because of the uncertainty of the Chinese economy. China is 50 percent of production and consumption of any big commodity, and their economy is not showing signs of strength," he said.