The company, which maintains an average monthly inventory level of 5kt of metal had stocks of 20kt at the beginning of last month as demand dropped following the global economic slowdown.
Bangalore-based Jindal Aluminium is one downstream company that buys the metal from government-owned Nalco. The company sold 36kt of metal in March which helped it trim its inventory level to below 15kt. It did not quantify the discount offered to its clients.
The company had at least two price revision in March to boost sales. The decline in aluminium price prompted many producers, including the Vedanta group-controlled Bharat Aluminium Company (Balco), to reduce output as the spot price was below the production cost.
Nalco did not cut production.
The company continued to sell about 60% of its production, which are on long-term contracts and priced around $2000/t, while keeping the rest in warehouses.