According to trade sources Nalco, Vedanta and Hindalco have cut prices of their products in accordance with the falling aluminium prices.
Hindalco Industries Ltd is also reported to have cut the prices of aluminium products by more than 1%, effective November 21. The basic price of Hindalco’s P1020 Grade Ingots/Sows stands at INR 1,54400 (US$ 2187)per tonne on November 21, down from INR 1,56,400 ((USD 2215) per tonne on November 15. Prices of Hindalco’s aluminium products are now at their lowest level since mid-August. The company’s product prices have dropped over 6-7% in third quarter from the 2nd. This is in line with price of three-month futures of aluminium on the London Metal Exchange, which have declined more than 4% so far this quarter. Aluminium business accounted for 50% share in Hindalco’s sales and 70% of its operating profits in FY18.
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National Aluminium Co Ltd (Nalco) has cut prices of aluminium alloy ingots and sow ingots for the sixth time in a row this quarter. The company cut prices by nearly 2% with effect from November 18. Prices of these products are now down more than 5% in the current quarter, and are at their lowest level since late March. Nalco’s aluminium alloy ingot (IA40) price now stands at INR 1,67,050 per tonne, while sow ingots (SE07) stands at INR 1,63,850 per tonne.
Vedanta Ltd cut prices of aluminium ingots by 1% with effect from November 16 and there is no further cut after that this week. After the cut, the price for Vedanta aluminium ingot stands at INR 1,56,750 (US$ 2220) per tonne, down from 1,58,250 (USD 2241) per tonne on November 14. With this price cut, prices of Vedanta’s products are at their lowest level since mid-August. Prices of ingots are now down 4% for the quarter.
The three-month aluminium price in London Metal Exchange has fallen 4% since the start of the quarter. However, the price recovered a little this week and now stands at US$ 1953.50 per tonne on November 23.
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