India's top three aluminum players, NALCO, Hindalco, and Vedanta, raised their aluminum ingot and aluminum products prices this week in line with the LME aluminum benchmark price increase. NALCO increased its aluminum ingot price by INR 5,600 per tonne, or 2.6 percent, from the previous week to INR 221,450-224,950 per tonne, effective March 28. NALCO’s aluminum wire rod and billets prices also saw an increase of INR 5,600 per tonne from the previous week.
Hindalco increased its aluminum ingot price twice this week, on March 28 and March 30, by INR 3,500 per tonne and INR 6,000 per tonne, respectively, with the two successive hikes reaching INR 232,350 per tonne on March 28 and INR 238,350 per tonne on March 30. Hindalco's aluminum wire rods and billets prices also saw an increase of INR 3,500 per tonne and INR 600 per tonne on March 28 and March 30, respectively.
Vedanta's aluminum prices also saw two hikes and one drop this week. The company raised its aluminum ingot price on March 28 and March 30 but reduced it on March 31. Overall, the price stands 3 percent higher than the previous week. Vedanta’s aluminum wire rod and billet prices also saw an increase of INR 3,500 per tonne and INR 6,000 per tonne on March 28 and March 30, respectively, but saw a cut of INR 2,000 per tonne on March 31.
All three companies link their aluminum prices to the three-month futures of aluminum on the London Metal Exchange, which increased by US$79 per tonne or 3.5 percent to US$2,344 per tonne as of March 30. The rise in prices is attributed to a hike in LME aluminum benchmark prices and a general trend in the global aluminum market.
The price hike could also be a result of various factors such as the increase in demand for aluminum products and aluminum ingots, the rising costs of production, and the limited availability of raw materials. Additionally, the companies have been affected by the COVID-19 pandemic and the subsequent lockdowns, leading to a halt in operations and a decrease in demand.
The price hike in aluminum products could impact several industries that rely heavily on aluminum, such as the automobile and construction sectors. The price hike could lead to an increase in the cost of production, which could be passed on to the consumers. It could also affect the competitiveness of the Indian market in the global arena.
In conclusion, the price hike in aluminum products by NALCO, Hindalco, and Vedanta is in line with the LME aluminum benchmark price increase. The rise in prices could be attributed to various factors, such as the increase in demand for aluminum products, the rising costs of production, and the limited availability of raw materials. The price hike could have a significant impact on several industries that rely heavily on aluminum, such as the automobile and construction sectors, and may affect the competitiveness of the Indian market in the global arena.