Vedanta hikes its aluminium prices by INR 2,000 per tonne following two back-to-back cuts

According to the recent report, Vedanta has increased its aluminium ingots prices by INR 2000 per tonne or 1.47 per cent with effect from Thursday, June 18. The prices are thus, now ranging between INR 137,750 per tonne and INR 150,750 per tonne, as compared to INR 135,750-148,750 per tonne on Saturday, June 13.

With the latest hike following two consecutive declines last week, Vedanta’s aluminium billet price has come in at INR 145,750 per tonne, also up by INR 2000 per tonne or 1.39 per cent from INR 143,750 per tonne on June 13.

Like any other Indian aluminium producers, Vedanta also links its aluminium and aluminium products prices to the three-month futures of aluminium on the London Metal Exchange. The three-month futures of aluminium are down nearly 11% 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.

Vedanta’s revenue in the financial year 2019-20 stood at INR 19,513 crore after declining 8 per cent from the previous fiscal. The company’s aluminium production totalled 1.904 million tonnes, while alumina 1.811 million tonnes in FY20. Vedanta’s aluminium cost of production in Q4 FY20 stood at $1451 per tonne, and that of its alumina cost of production during the same period came in at $275 a tonne.