Reportedly, India's aluminum exports may rise 5% to 325,000 tons in the current fiscal year in spite of the weak global demand as falling prices have led global producers such as Alcoa and Norsk Hydro to cut production, making the world's largest consumer of Aluminum, China and Japan to increase purchases.

According to India's Vedanta Aluminum Limited, the export demand has slightly improved due to the sudden closure of some of the US smelters.

Vedanta Aluminum produces about 40% of the South Asian nation's total output.

The LME aluminum contract of 3 month benchmark on last Friday was at US$1,846.25/ton, down by 22% from its year high in March.

Traders said that Indian aluminum exports to China, Japan and South Korea are currently priced at a premium of US$223/ton~US$230/ton above the LME benchmark, lower than the US$240 /ton~US$260/ton premium from other countries.