Vedanta Ltd cut prices of aluminium ingots for the fifth time in a row by more than 2% with effect from Thursday January 3, making the price of P1020 / EC High purity ingot fall to INR 146,500 per tonne. With Thursday’s cuts, rates of these products are now at their lowest levels in more than a year. Before that, Vedanta cut prices to INR 149,000 per tonne on December 29.
Aluminium prices plunged after the US said it would lift sanctions on Rusal Plc, one of the largest producers of the metal globally, on whose products it put a punitive sanction in April. LME aluminium slumped to the lowest in two years after the holiday on January 3 as the US dollar strengthened along with the Rusal’s freedom from sanctions. 3-months offer price for LME aluminium stood at US$ 1820.50 per tonne on January 3.
Aluminium is one of the largest contributors to the company's revenue. Vedanta is present in the aluminium segment through its stake in Bharat Aluminium Co Ltd and smelters at Jharsuguda in Odisha. The company commands 40% share in India's primary aluminium market.
Hindalco Industries Ltd has cut the prices of its aluminium products by 2-3% with effect from Thursday, January 3. This price cut follows one last week, and one a week prior to that. Rates of Hindalco's products were down 8-10% for the December quarter compared to the previous quarter. After the price cut on Thursday, January 3 the prices of P1020/ EC Grade Ingot & Sow Cast Bar stood at INR 145,000 per tonne. Before that, Hindalco cut prices to INR 149,500 per tonne on December 25, 2018.
Aluminium operations, excluding those of subsidiary Novelis Inc, accounted for nearly half of Hindalco's sales and 70% of its operating profit for 2017-18 (Apr-Mar).
Responses
