Hindalco cuts its aluminium ingot price by INR2000/t with effect from June 25 after a hike last week

Hindalco Industries Limited has again reduced its aluminium prices in line with the market demand and supply, following a hike last week. The company has cut its aluminium ingot price by INR 2000 per tonne or 1.43 per cent, with effect from June 25, to bring down the price at INR 137,500 per tonne from INR 139,500 per tonne on June 18.

With the latest cut, Hindalco's aluminium wire rods and billets prices have come in at INR 148100 per tonne and INR 144100 per tonne, respectively, down by INR 2000 per tonne from INR 150,100 per tonne and INR 146,100 per tonne, as of June 18.

The Indian aluminium producers generally link prices of its products to the three-month futures of aluminium on the London Metal Exchange. The three-month futures of aluminium declined more than 11% 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.