Hindalco cuts its aluminium ingot price by INR 5,000/t with effect from May 16

Hindalco Industries Ltd has cut prices of its aluminium ingots, billets and wire rods after raising the prices of the same products by 3%, which came after five consecutive price cuts. With effect from May 16, the price for Hindalco aluminium ingots now stands at INR 129,500 per tonne, a decrease of 3.72% or INR 5,000 per tonne from INR 134,500 per tonne on April 17.

Hindalco is now selling its wire rods at INR 140, 600 per tonne, a drop of 3.43% or INR 5,000 per tonne from INR 145,600 per tonne. The price of billets has reduced by 3.53% from April 17 to stand at INR 136,600 per tonne.

The Indian aluminium producers generally link prices of its products to the three-month futures of aluminium on London Metal Exchange. The three-month futures of aluminium are down so far in 2020 due to slower global demand following the coronavirus outbreak. Aluminium prices are expected to remain under pressure due to the Coronavirus pandemic.

Aluminium operations of the company, excluding those of its US arm Novelis Inc, generally account for nearly half of its total sales and 70% of its operating profit.