Hindalco increases its aluminium prices by over 1% with effect from June 4

After two consecutive cuts this month, Hindalco has increased the prices of its aluminium ingots, billets, and wire rods by over 1 per cent, with effect from June 4, 2020. With the latest price hike, Hindalco’s aluminium ingot price has jumped to INR 133,250 per tonne, 1.33 per cent higher from INR 131,500 per tonne on June 3.

The prices of Hindalco’s aluminium wire rods and billets are now at INR 144,350 per tonne and INR 140,350, respectively, after rising by 1.23 per cent and 1.26 per cent from the previous day. On June 3, Hindalco’s aluminium wire rods and billets prices were INR 142,500 per tonne and INR 138,600 per tonne, respectively.

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 nearly 16% so far in 2020 due to slower global demand following the coronavirus outbreak. Aluminium prices are expected to remain under pressure due to the ongoing COVID-19 pandemic.

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.