High energy prices to dent aluminium makers' profit

By its very nature, aluminium will always remain a lot more expensive than steel, which it is seeking to replace in many high end applications. Very appropriately, the chief technical specialist of Jaguar Land Rover, a marquee acquisition of Tata Motors, Mark White told Reuters that on replacement question aluminium price relative to steel is one issue, but the main issue is volatility of aluminium prices, which cant be stressed enough. Aluminium is replete with instances of major price swings leaving its producers either in a profit binge or forcing them to shut relatively high cost smelters.

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