Hindalco’s aluminium ingot price grows by INR9250/t following LME price surge on stringent production

Hindalco Industries’ aluminium ingot and aluminium products prices have continued witnessing hikes, in line with an incessant LME aluminium price surge, attributable to the anticipation of disrupted metal production due to natural gas price rise and supply scarcity. With effect from Friday, March 25, Hindalco has increased its aluminium ingot price by INR 9,250 per tonne or 3 per cent to INR 318,000 per tonne. On Wednesday, March 23, Hindalco’s aluminium ingot price stood at INR 308,750 per tonne, up by INR 3,500 per tonne from the previous day.

Hindalco’s aluminium wire rod price has also been raised by INR 9,250 per tonne from INR 319,850 per tonne on March 23 to INR 329,100 per tonne on March 25. Aluminium billets price is no exception but has witnessed a rise of INR 9,250 per tonne or 2.87 per cent to stand at INR 332,100 per tonne. On March 23, the price rested at INR 322,850 per tonne after being expanded by INR 3,500 per tonne.

Hindalco links its aluminium ingot and aluminium products prices to the three-month future of aluminium on the London Metal Exchange, which soared by US$104 per tonne on March 24 to US$3,664 per tonne, following an increase of US$9.5 per tonne on the previous day and marking the fifth consecutive day of hike. Thus, as of March 24, the LME aluminium benchmark price stood 4.12 per cent higher on the month from US$3,519 per tonne.

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.