Hindalco and Vedanta cut aluminium prices by 1% after two consecutive hikes

After raising prices two times in a row, Hindalco Industries Limited reduced the prices of aluminium ingots, billets, and wire rods by 1 per cent, with effect from Saturday, January 4.

From INR 145,250 per tonne, as of December 25, Hindalco decreased the aluminium ingot price by 1.03 per cent to INR 143,750 per tonne, while that of the aluminium billets and wire rods, the company reduced the prices by 0.98 per cent and 0.96 per cent respectively. Therefore, the prices are now at INR 150,350 per tonne and INR 154,350 per tonne, compared to INR 151,850 per tonne and INR 155,850 per tonne in the previous week.

The three-month futures of aluminium rose nearly 6 per cent on the London Metal Exchange in the December quarter, and Hindalco raised prices of its aluminium products by 4 per cent in the same period. Prices of aluminium were down in August and September.

 Hindalco's aluminium operations, excluding those of its US arm Novelis Inc, generally account for nearly half of its total sales and 70% of its operating profit.

Vedanta Limited also reduced its aluminium products prices by more than 1 per cent last week after the two consecutive hikes. The products now cost INR 142,000 per tonne to INR 155,000 per tonne.

Vedanta, having a stake in Bharat Aluminium Co Ltd and smelters at Jharsuguda in Odisha, commands a 40 per cent share in India's primary aluminium market.