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01 NOVEMBER 2018 AL CIRCLE

Hindalco and Vedanta cut prices of aluminium ingots in line with falling 3-months LME prices

EDITED BY : BEETHIKA BISWAS 2MINS READ

According to trade sources both Vedanta and Hindalco have cut prices of their products on Wednesday October 31.

Vedanta Ltd has cut prices of aluminium ingots by more than 1% from October 31, after raising the prices of the same products by over 1%, which came after eight consecutive price cuts.

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With yesterday’s cut, prices of Vedanta’s aluminium ingots stand at their lowest levels since late August.  Rates of these products are now down 2% for the third quarter. The three-month aluminium price in London Metal Exchange has fallen 3% since the start of the month and stood at US$ 1966.50 per tonne on October 31. After the cut, the price for Vedanta aluminium ingot stands at INR 163000 (USD2217.78) per tonne, down from INR 165000 (USD2245) per tonne on October 30.

Vedanta generates the largest share of its revenue from aluminium sales and commands 40% share in India’s primary aluminium market.

Hindalco Industries Ltd is also reported to have cut the prices of aluminium products by over 1%, the sixth consecutive cut in price.  

The basic price of Hindalco’s P1020 Grade Ingots/Sows stands at INR 161650 (USD 2199.41) per tonne on October 31, down from INR 163650 (USD 2226.62) per tonne on October 25. Prices of Hindalco’s aluminium products are now at their lowest level since late-August. The company’s product prices have dropped over 2% in third quarter from the 2nd.

This is in line with the falling three-month aluminium future price in the London Metal Exchange, which is down 3% in the current quarter.  Aluminium business accounted for 50% share in Hindalco’s sales and 70% of its operating profits in FY18.


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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