Hindalco’s aluminium products prices experience a sharp cut of INR11250/t in only three days

Hindalco Industries Limited axed its aluminium products prices for three consecutive days last week since February 23. Following the cut of INR 3,750 per tonne on February 23, Hindalco withdrew another INR 1,750 per tonne from its aluminium wire rod price on February 24. Hence, the product’s selling price totalled INR 236,850 per tonne as of February 24. On February 25, the product price continued being reduced and saw the sharpest cut than the previous two days reaching INR 231,100 per tonne, down by INR 5,750 per tonne from a day prior. 

Hindalco also reduced its aluminium billets price by INR 5,750 per tonne on February 25 to sell the product at INR 234,100 per tonne. On February 24, the billet price stood at INR 234,100 per tonne, down by INR 1,750 per tonne from INR 241,600 per tonne the earlier day.

So, this can be concluded by saying that in only three days last week, Hindalco’s aluminum products prices saw a cut of INR 11,250 per tonne.

The company’s aluminium ingot price saw no exception but a cut of INR 5,750 per tonne to stand at INR 220,000 per tonne as of February 25 versus INR 225,750 per tonne on February 24.

Hindalco links its aluminium ingot and aluminium products prices to the three-month futures of aluminium on the London Metals Exchange, which nosedived by US$123.50 per tonne during February 22-24 from US$2,385.50 per tonne to US$2,307 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.