Hindalco hikes its aluminium ingot price by INR2,750/t to stand at INR 138,000/t

Hindalco Industries Ltd has raised its aluminium products price after cutting it by more than 1% on June 26. With effect from Saturday June 27, Hindalco aluminium ingots price now stands at INR 138,000 per tonne, an increase of 2.03% or INR 2,750 per tonne from INR 135,250 per tonne on June 26.

The company is now selling its wire rods and billets at INR 149,100 per tonne and INR 145,100 per tonne with effect from Saturday, 27 June 2020, marking a growth of 1.88% and 1.93% from June 26.

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 declined by more than 14% 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.

Hindalco Industries closed the financial year 2019-20 (FY20) with 31% decline in its consolidated net profit at INR 3,767 crore as compared to INR 5,495 crore in the preceding fiscal. The consolidated revenue from operation dropped by 9% to INR 1.18 lakh crore against INR 1.31 lakh crore in the financial year 2018-19.

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.