Nalco lowers aluminum price to match global levels

National Aluminium Co., India's biggest state-run producer, lowered prices by more than 3 percent to match a decline in international rates. Its shares fell.

Nalco, as the company is known, cut prices by 4,500 rupees ($93.5) a ton to 128,400 rupees, Chairman C.R. Pradhan said by telephone from the eastern city of Bhubaneswar, where the company is based. The price came into effect from Oct. 11, he said.

Aluminum has fallen more than 7 percent this month amid concern slower economic growth will curb demand for raw materials including industrial metals. Goldman Sachs Group Inc. reduced its price forecast for all base metals today, citing slowing growth and a ``substantial deterioration'' in demand from China.

The metal will probably average $2,060 a ton in the next three months, 30 percent less than predicted, Goldman said today.

The shares, which have retreated 25 percent this year, fell as much as 2.2 percent to 361.1 rupees today and traded at 366 rupees at 2:31 p.m. in Mumbai. India's Sensitive index rose 6.9 percent, the biggest gain in more than four years.

National Aluminium sells the metal at prices linked to the London Metal Exchange, where aluminum for three-month delivery rose 1.1 percent to $2,239 a ton at 8:08 a.m. in London.