Vedanta’s aluminium ingot price declines to INR 146,500-159,500/t with effect from September 18

Vedanta has reduced its aluminium ingot price today after hiking the price of the same products by INR 2,000 per tonne on Wednesday. With effect from Friday, 18 September 2020, the prices of some aluminium ingots are in the range of INR 146,500-159,500 per tonne, marking a decline of INR 1,250 per tonne from INR 147,750-160,750 per tonne on Wednesday, 16 September 2020.

With the latest decline, Vedanta’ billet now stands at INR 154,500 per tonne on September 18. That was down INR 1,250 per tonne from INR 155,750 per tonne on September 16.

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 are down so far 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.

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