Vedanta cuts its aluminium prices for the second time in a new fiscal year, bringing ingot price to INR297000-344500/t

Vedanta Limited reduced its aluminium ingot and aluminium products prices for the second time in a row in the new financial year 2022-23. With effect from April 5, the company cut its aluminium ingot selling price by INR 4,250 per tonne or 1.4 per cent to INR 297,000-344,500 per tonne. On April 2, the price ranged between INR 301,250 per tonne and INR 348,750 per tonne, seeing a trimming of INR 2,000 per tonne.

Like any other Indian aluminium producers, Vedanta Limited links its aluminium products and aluminium ingot prices to the three-month futures of aluminium on the London Metal Exchange. So, in tandem with the continuous downfall in LME aluminium benchmark price from US$3,483 per tonne on April 1 to US$3,415 per tonne on April 5, Vedanta cut its aluminium prices. On a month-on-month calculation, the LME aluminium price stood US$436 per tonne lower than US$3,851 per tonne as of April 5.

Vedanta’s aluminium wire rod price also saw a downfall of INR 4,250 per tonne on April 5 to stand at INR 304,500-312,000 per tonne versus INR 308,750-316,250 per tonne on April 2. Aluminium billet price has come in at INR 305,000 per tonne, also down by 1.4 per cent from the previous price of INR 309,250 per tonne.

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.