Vedanta sharply cuts its aluminium wire rod and billet prices by INR7250/t as LME aluminium benchmark price shrinks

Vedanta Limited, a subsidiary of Vedanta Resources Limited, has sharply cut its aluminium products and aluminium ingot prices with effect from Thursday, May 13. Vedanta's aluminium wire rod price has come in at INR 217,000-224,500 per tonne, down by INR 7,250 per tonne from INR 224,250-231,750 per tonne on Tuesday, May 11.

Aluminium billet price has also been reduced by INR 7,250 per tonne on May 13 to INR 217,500 per tonne from INR 224,750 per tonne on May 11. The aluminium producer is selling its aluminium ingot price at INR 209,500-222,500 per tonne with effect from May 13 compared to INR 216,750-229,750 per tonne on May 11.

Vedanta links its aluminium products and aluminium ingot prices to the three-month futures of aluminium on the London Metal Exchange, which during May 11-12 declined by US$ 91 per tonne to stand at US$ 2,474 per tonne. On a month-on-month calculation, the three-month futures of aluminium on LME are up by US$ 220 per tonne or 9.76 per cent, while on the year increased by US$ 1,031 per tonne or 71.45 per cent.

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.