Vedanta cuts its aluminium products price by INR 3,000 per tonne

Vedanta cuts its aluminium products price after raising it for the second time in a row. With effect from Saturday 4 July 2020, the prices of some aluminium ingots are in the range of INR 135,500-148,500 per tonne, a decrease of 2.17% or INR 3,000 per tonne from INR 138,500-151,500 per tonne on July 1.

With the latest cut, Vedanta’ billet now stands at INR 143,500 per tonne on July 4, a drop of INR 3,000 per tonne or 2.05% from INR 146,500 per tonne on July 1.

The Indian aluminium producers generally link prices of its products to the three-month futures of aluminium on London Metal Exchange. The three-month futures of aluminium have been declining due to slower global demand following the coronavirus outbreak.

Vedanta Limited cuts its aluminium Cost of Production (CoP) in the fourth quarter of FY20 by 20 per cent year-on-year to $1451 per tonne. In the full financial year 2020, Cost of Production was down by 14 per cent year-on-year to $ 1690 per tonne. In FY2020, Aluminium production stood at 1.904 million tonnes.

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.