Vedanta expands its aluminium price hike to nearly 3% with effect from June 11

According to a recent report, Vedanta has further increased its aluminium ingot and billet prices with effect from Thursday, June 11, marking the third consecutive growth. While the rate of price hike has increased from the earlier time to 2.77 per cent or INR 3,750 per tonne, the aluminium ingot price of Vedanta is now ranging between INR 139,250 per tonne and INR 152,250 per tonne, compared to INR 135,500-148,500 per tonne on June 6.

In the latest hike, Vedanta’s aluminium billet price has also increased by INR 3,750 per tonne or 2.61 per cent to stand at INR 147,250 per tonne.  Earlier, after the price growth on June 6, Vedanta’s aluminium billet price was standing at INR 143,500 per tonne.

Vedanta’s price hike today follows its aluminium Cost of Production cut report yesterday, on June 10. Vedanta, in the fourth quarter of FY20, trimmed its aluminium manufacturing cost by 20 per cent year-on-year to $1451 per tonne. With this cut, Vedanta’s total aluminium Cost of Production for the full year of FY20 stood down by 14 per cent to $1690 per tonne.

The Indian aluminium producers generally link prices of their products to the three-month futures of aluminium on the London Metal Exchange.

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.