Hindalco increases its aluminium ingot price by 1 per cent to INR138250/t with effect from July 8

Following the cut on Saturday, July 4, Hindalco Industries Limited has increased its aluminium ingot price with effect from Wednesday, July 8. With the latest hike, the company’s ingot price has come in at INR 138,250 per tonne compared to INR 136,750 per tonne on July 4, meaning an increase of INR 1,500 per tonne or 1.1 per cent.

Hindalco is selling its aluminium wire rods and billets at INR 149,350 per tonne and INR 145,350 per tonne, respectively, up by INR, 1,500 per tonne or 1.per cent from INR 147,850 per tonne and INR 143,850 per tonne, as of July 4.

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 are down by over 9 per cent so far in 2020 due to the slower global demand caused by the COVID-19 outbreak. Aluminium prices are expected to remain under pressure due to the ongoing 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.