Hindalco extends aluminium ingot price cut by 3% w.e.f. May 13 on continued decrease in LME aluminium benchmark price

Hindalco Industries Limited has extended its aluminium ingot and aluminium product price cut for the second day in a row, with effect from Thursday, May 12. Aluminium ingot price has witnessed a reduction of INR 6,250 per tonne to INR 209,250 per tonne. On the previous day, May 12, the company’s aluminium ingot price stood at INR 215,500 per tonne, inching down by INR 1,500 per tonne from INR 217,000 per tonne as of May 11.

Since the latest cut, Hindalco is selling its aluminium wire rod price at INR 220,350 per tonne, which is also down by INR 6,250 per tonne from INR 226,600 per tonne on May 12. Hindalco’s aluminium billets price has come in at INR 216,350 per tonne on May 13 from INR 222,600 per tonne on a day earlier.

Hindalco links its aluminium products and aluminium ingot prices to the three-month futures of aluminium on the London Metal Exchange, which on May 13 further decreased by US$ 51.50 per tonne to stand at US$ 2,422.50 per tonne. Thus, on a month-on-month calculation, the three-month futures of aluminium on LME are currently up by US$ 168.50 per tonne or 7.48 per cent, while on the year increased by US$ 979.50 per tonne or 67.88 per cent.

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