Vedanta Ltd increases its aluminium ingot and billet prices by INR1250/t with effect from July 8

Vedanta Limited has increased its aluminium ingot and aluminium billet prices with effect from July 8, following the two consecutive cuts on July 1 and July 4. The aluminium ingot price has been raised by INR 1,250 per tonne or 1 per cent to INR 136,750-149,750 per tonne. After the last cut, Vedanta’s aluminium ingot price was in the range of INR 135,500-148,500 per tonne.

With the latest hike, Vedanta's aluminium billet price has come in at INR 144,750 per tonne, up by INR 1,250 per tonne or 1 per cent from INR 143,500 per tonne, as of July 4. 

The Indian aluminium producers generally link prices of its products to the three-month futures of aluminium on the London Metal Exchange, which in the last two days recorded growth from US$ 1581.5 per tonne to US$ 1596.5 per tonne. However, the overall price of the three-month futures of aluminium on LME is down by over 9 per cent in 2020 so far. Going ahead, the global aluminium prices are likely to be under further pressure due to the COVID-19 crisis. 

Nonetheless, amidst all the catastrophes, Vedanta Limited managed to cut 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.