Vedanta hikes its aluminium products price by INR 2,250 per tonne

Vedanta hikes its aluminium products price for the second time in a row. With effect from Thursday 9 July 2020, the prices of some aluminium ingots are in the range of INR 139,000-152,000 per tonne, an increase of 1.65% or INR 2,250 per tonne from INR 136,750-149,750 per tonne on July 8.

With the latest hike, Vedanta’ billet now stands at INR 147,000 per tonne on July 9, a rise of INR 2,250 per tonne or 1.55% from INR 144,750 per tonne on July 8.

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.