Bhubaneswar, Jun 10 (IANS): Aluminium prices are likely to remain in a range of $2,500 to $2,700 a tonne for at least the next two-three months, India's state run National Aluminium Company Limited (NALCO) said Friday.

"We believe that in the short term in next two to three months the prices should remain range-bound between $2,500 and $2,700," B.L.Bagra, NALCO chairman-cum-managing director, told IANS.

NALCO is India's third largest aluminium producer. Although it is a small player in the global metal market, its sales prices serve as an international benchmark.

"Demand is very slowly but steadily growing with the recovery in transport sector coming back in Europe," he said.

Bagra believes the equilibrium of demand and supply will continue to stay balanced for the rest of this fiscal up to December.

Aluminium prices will be influenced largely by the strength of the dollar and other major currencies which have been under pressure for quite some time, he said.

By the end of the current financial year ending March the aluminium prices should end up at around $2700 a tonne, Bagra said.

"They may not go below $2500 due to the cost push factor," he added.