India’s aluminium extrusion output falls

India’s aluminium extrusion industry is facing mounting pressure as production has dropped while manufacturers operate at only about 30 per cent of installed capacity, prompting concerns over the viability of several factories. The Aluminium Extrusion Manufacturers Association of India (ALEMAI) has also sought the removal of the 7.5 per cent basic customs duty on primary aluminium which, together with the applicable surcharge, results in an effective duty of about 8.25 per cent, arguing that the levy is adding to raw-material costs for domestic downstream manufacturers.

According to the latest industry figures, India’s aluminium extrusion production has declined to around 800-900 thousand tonnes, from approximately 1.2 million tonnes earlier. This compares with an installed extrusion capacity of nearly 3 million tonnes. The contraction has raised concerns about further factory closures if operating conditions do not improve.

Higher input costs can squeeze already-thin processing margins and make it harder for domestic producers to compete with imported finished products.

The latest industry estimates indicate that imports of aluminium extruded products have risen to around 1.5-1.6 million tonnes, significantly above domestic production of 800-900 thousand tonnes.

The widening gap between domestic output and imports has become a key concern for India’s downstream aluminium industry. With a substantial portion of the country’s extrusion capacity remaining underutilised, manufacturers are seeking policy measures that they say could improve their cost competitiveness.