Vedanta cuts aluminium prices by more than 1.5% after three consecutive hikes last week

After raising aluminium prices for the three times in a row, Vedanta has reduced both aluminium ingots and billets prices as of Wednesday, May 27. After the cut, Vedanta’s aluminium ingot prices are ranging between INR 131,750 per tonne and INR 144,750 per tonne, down by INR 2,250 per tonne or 1.68 per cent from INR 134,000-147,000 per tonne on May 22.

Vedanta’s aluminium ingots prices on May 22 were up by INR 2,000 per tonne or 1.5 per cent from INR 132,000-145,000 per tonne on May 20.

With the latest cut, Vedanta’s aluminium billets prices have lowered to INR 139,750 per tonne compared to INR 142,000 per tonne on May 22. This means the billets prices have also been reduced by INR 2,250 per tonne.

On May 22, Vedanta’s aluminium billets prices had increased by INR 2,000 per tonne from INR 140,000 per tonne on May 20.

The Indian aluminium producers generally link prices of its products to the three-month futures of aluminium on the London Metal Exchange. The three-month futures of aluminium are down more than 20% so far in 2020 due to slower global demand following the coronavirus outbreak.

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.