Hindalco’s aluminium ingot price rallies to INR297000/t in line with new global price high driven by sanctions on Russia
Hindalco Industries Limited has hiked its aluminium ingot and aluminium products prices, with effect from Tuesday, March 1, in response to LME aluminium benchmark price surge to a new high owing to more sanctions imposed on major producer Russia over the weekend, heightening supply disruptions. Hindalco has raised its aluminium ingot price by INR 8,500 per tonne to INR 297,000 per tonne as of March 1. On February 26, the price stood at INR 288,500 per tonne, seeing a sharp downfall of INR 13,250 per tonne from the previous day.
Hindalco’s aluminium billets price has also seen a surge of INR 8,500 per tonne, with effect from March 1, to stand at INR 311,100 per tonne versus INR 302,600 per tonne on February 26. The company’s aluminium wire rod price also climbed INR 8,500 per tonne from INR 299,600 per tonne on February 26 to INR 308,100 per tonne on March 1.
Hindalco links its aluminium ingot and aluminium products prices to the three-month future of aluminium on the London Metal Exchange, which grew to another record high by US$94.50 per tonne or 2.82 per cent to US$3,450 per tonne, as of Monday, February 28. Thus, on a month-on-month calculation, the price is up by US$340 per tonne from US$3,110 per tonne.
The aluminium operations of the company, excluding those of its US arm Novelis Inc., generally account for nearly half of its total sales and 70% of its operating profit.