Vedanta’s aluminium ingot price shrinks by INR1500/t w.e.f. December 22 after two consecutive hikes

Vedanta Limited has reduced the prices of its aluminium ingot and aluminium products with effect from Tuesday, December 22, after two consecutive hikes on December 10 and December 11. With the latest cut, Vedanta’s aluminium ingot price has come in at INR 167,750-180,750 per tonne, down by INR 1,500 per tonne from INR 169,250-182,250 per tonne on December 11.

Vedanta is currently selling its aluminium wire rod at INR 175,250-182,750 per tonne after reducing it by INR 1,500 per tonne as well from INR 176,750-184,250 per tonne. Vedanta’s aluminium billet price has shrunk to INR 175,750 per tonne from INR 177,250 per tonne on December 11.

Vedanta, like any other Indian aluminium producers, links its aluminium product and aluminium ingot prices to the three-month futures of aluminium on the London Metal Exchange, which after December 11 decreased to US$ 2012.50 per tonne, as of Monday, December 21. Currently, the LME aluminium three-month futures price is up by US$ 240.50 per tonne or 13.57 per cent since the beginning of 2020.

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.