Vedanta, Hindalco & Nalco Shares Surge Up to 5% as Aluminium Prices Rally Past $2,850/tonne

Mumbai, October 24: Shares of Vedanta Ltd, Hindalco Industries Ltd, and National Aluminium Company Ltd (Nalco) are witnessing heavy rally today, on October 24. This comes after aluminum prices jumped over $2,850 per tonne on the London Metal Exchange.

Vedanta, Hindalco & Nalco Shares Surge Up to 5%

As of 12:45 PM, Vedanta Limited share price is up by 2.58%, or 12.45 points, and is currently trading at ₹495.70. At the same time, Hindalco Industries Limited share price is up by 3.67%, or 29.10 points, and is trading at ₹821.50. Furthermore, National Aluminium Company Limited share price is up by 4.37%, or 9.98 points, and is trading at ₹238.26.

Key Trigger: Aluminum Prices Rally

The rise in the share prices of aluminium stocks comes after the aluminium prices have jumped over $2,850/tonne on the London Metal Exchange. The price is driven by production disruptions and limited supply of aluminium in the global markets. A key reason for this was Century Aluminum’s production slowdown at its Grundartangi smelter in Iceland, due to an equipment failure that limited the output by cutting it two-thirds.

US Aluminium Tariffs and Indian Producers

The US has recently doubled the tariff on imported aluminium, raising it from 25% to 50%. This could actually help Indian aluminium producers like Hindalco and Vedanta. Even though India doesn’t sell much aluminium directly to the US, this higher tax makes it harder for other countries to sell there. This might reduce global competition and tighten supply, which can potentially benefit Indian companies which have international aluminium operations.

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