Hindalco finds copper cushion in W Asia crisis

Strong sulphuric acid demand offsets pressure on refining charges globally

- URVI MALVANIA

HINDALCO INDUSTRIES EXPECTS its copper business to remain resilient through the ongoing West Asia crisis, aided by elevated sulphuric acid prices and strong downstream demand, even as global copper refining economics remain under pressure.

The company said gains from sulphuric acid sales helped offset weak treatment and refining charges (TCRCs) and lower copper shipments during the March quarter. Copper segment revenue grew 52% year on year at ₹14,565 crore while Ebitda rose 48% year-on-year to a record ₹907 crore despite metal shipments falling 5% to 128 kt.

“Copper prices have gone up quite a lot. But that doesn’t really benefit us. What we have benefited from is a strong demand for sulphuric acid and an increase in sulphuric acid prices because they are indexed to worldwide prices of sulphur, which have gone up because of the Middle East crisis,” Satish Pai, managing director, said during the earnings call.