Nalco Expects Profitability To Rise In Current Quarter
U.S. import tariffs will have minimal impact on Nalco, chairman says.
Government-owned National Aluminium Company Ltd. sees improved financials in the current quarter, even as steel and aluminium companies across the world gauge the impact of import tariffs by the U.S.
Higher shipments along with increasing product prices and captive electricity generation by the company will help improve profitability during the current quarter, Nalco Chairman and Managing Director TK Chand told BloombergQuint in an interview. The company’s performance during the quarter ended December had been impacted by higher electricity price and lower price realisations. “From the next year, there will be a strong increase in our revenues as well as in profitability," Chand said.
U.S. President Donald Trump imposed import tariffs of 25 percent on steel and 10 percent on aluminium last week. The impact “will be marginal because our export to U.S. is around 11 percent of total exports. We export 25,000 tonnes we export and we import around 75,000, so net exports is around 50,000,” Chand said.
He, however, expects some indirect impact as China and Middle Eastern countries, which are major exporters to the U.S. market, may offload their products in the international market.