Indian aluminium producers shift focus to domestic, UK markets

Bhubaneswar: Indian aluminium producers have downplayed concerns over the effect of US tariff hike up to 25% on imports, with companies reorienting their exports to tariff-free destinations like the UK while simultaneously strengthening their presence in the domestic market.Nalco ruled out any adverse fallout from the tariff hike, stressing that its business strategy has already pivoted towards the UK, where aluminium exports face zero duty."The US tariff revision will not affect Nalco's business. On the contrary, we see significant potential in the UK, which provides a duty-free window for aluminium," said Nalco CMD Brijendra Pratap Singh.Vedanta Aluminium, one of India's largest producers, also indicated minimal exposure to the US market. "Aluminium exports to the US comprise less than 3% of our sales mix. Hence, we do not foresee any immediate impact from the tariff hike even as we continue to monitor the evolving situation," said Rajiv Kumar, CEO, Vedanta Aluminium.Kumar said the tariff shock is pushing producers to embrace the ‘produce in India, consume in India' model. "We are doubling down on domestic investments, deepening value addition, and building resilient supply chains that can drive long-term growth and self-reliance," he added.He also urged the govt to accelerate policy reforms such as deregulation, simplified taxation and single-window clearances to support metals and mining. Additionally, he called for timely safeguard duties to shield Indian markets from foreign dumping.Hindalco Industries, another major player, is expected to feel some effects, but analysts believe its diversified global operations and strong domestic demand base will cushion the impact.Industry experts said while Indian producers may lose some ground in the US, opportunities lie in Europe, Southeast Asia and within India itself. Rising infrastructure push, renewable energy expansion and defence manufacturing are expected to absorb much of the domestic aluminium production. President of Utkal Chamber of Commerce and Industries, Prabodh Mohanty, said that while seafood exports may face setbacks, steel and aluminium sectors will remain largely unaffected, with opportunities to explore new markets, including domestic ones. He expressed optimism that the situation will stabilise by Dec. Satwik Swain, secretary general of the Odisha Association of Small and Medium Enterprises, said that MSMEs in the state, which focus on domestic markets and do not export to the US, will not face any direct consequence from the increased tariff on steel and aluminium.