Hindalco’s aluminium wire rod price declines by INR4000/t on March 12 in response to LME price fall

Hindalco Industries Limited continued to reduce its aluminium products and aluminium ingot prices, with effect from Saturday, March 12, in response to LME aluminium price fall by US$63 per tonne on Friday, March 11. Hindalco cut its aluminium wire rod price by INR 4,000 per tonne to bring it to 313,600 per tonne versus INR 317,600 per tonne on March 11.

Hindalco also axed its aluminium billets price by INR 4,000 per tonne on March 12 to sell the product at INR 316,600 per tonne. On March 11, the company was selling its aluminium billets at INR 320,600 per tonne, down by INR 2,750 per tonne from the previous day.  With effect from March 12, the company’s aluminium ingot price stood at INR 302,500 per tonne as against INR 306,500 per tonne on March 11.

Hindalco links its aluminium ingot and aluminium products prices to the three-month future of aluminium on the London Metal Exchange, which closed lower at US$3,472 per tonne on March 11 after two back-to-back rises from US$3,500.50 per tonne to US$3,535 per tonne. On a month-on-month basis, the price stood up by US$335 per tonne from US$3,200 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.