According to the latest update, Vedanta Limited has cut its aluminium ingot and product prices with effect from today, July 17, following three consecutive hikes during July 8-10. The company’s aluminium ingot price is now ranging between INR 140,000-153,000 per tonne, down by INR 2,250 per tonne or 1.58 per cent from INR 142,250-155,250 as of July 10.
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After the latest price cut, Vedanta is now selling its aluminium billet at INR 148,000 per tonne, also a decrease of INR 2,250 per tonne or 1.50 per cent from INR 150,250 per tonne on July 10. With the latest cut, Vedanta’s aluminium wire rod price is hovering at INR 147,500-155,000 per tonne.
The Indian aluminium producers generally link prices of its products to the three-month futures of aluminium on the London Metal Exchange, which from July 14 to July 16 recorded continued decline from US$ 1664.50 per tonne to US$ 1627 per tonne. The overall price of the three-month futures of aluminium on LME is down by 8 per cent in 2020 so far.
Vedanta Limited, in the fourth quarter of FY20, could cut its aluminium Cost of Production (CoP 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.
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