Vedanta’s aluminium ingot price declines by INR 2,250/t with effect from October 2

Vedanta has reduced its aluminium ingot price today after hiking the price of the same products by INR 1,500 per tonne on September 29. With effect from Friday, 02 October 2020, the prices of some aluminium ingots are in the range of INR 143,500-156,500 per tonne, marking a decline of INR 2,250 per tonne from INR 145,750-158,750 per tonne on 29 September 2020.

With the latest decline, Vedanta’ billet now stands at INR 151,500 per tonne on October 2, down INR 2,250 per tonne from INR 153,750 per tonne on September 29.

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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