Vedanta cuts aluminium ingot price by nearly 1% with effect from October 20 after a sharp hike last day

Vedanta Limited has again reduced its aluminium ingot and aluminium product prices with effect from Tuesday, October 20, following a hike of INR 3,500 per tonne on October 17. With the latest cut, the price of Vedanta’s aluminium ingot has come in at INR 154,250-167,250 per tonne, down by INR 1,250 per tonne or nearly 1 per cent from INR 155,500-168,500 per tonne.

Vedanta’s aluminium billet price is now at INR 162,250 per tonne after being reduced by INR 1,250 per tonne from INR 163,500 per tonne. The price of the company’s aluminium wire rod is also down by the same amount to INR 161,750-169,250 per tonne versus INR 163,000-170,500 per tonne on October 17.

Like any other Indian aluminium producers, Vedanta generally links its aluminium product prices to the three-month futures of aluminium on the London Metal Exchange, which on October 19 declined from US$ 1865.50 per tonne to US$ 1848 per tonne. With the fall, the hike in LME aluminium price over the year has also slowed down from 5.28 per cent to 4.28 per cent at the present.

Vedanta’s aluminium business typically accounts for one-third of the company’s consolidated sales. Vedanta has a stake in Bharat Aluminium Co Ltd and smelters at Jharsuguda in Odisha. It commands a 40% share in India's primary aluminium market.