Combinations such as tight supply and demand dynamics globally have kept prices of the metal on an upswing. For instance, Iceland’s Century Aluminum announced a temporary slowdown in production at its Grundartangi smelter in Iceland following an equipment failure. The disruption has reduced output by roughly two-thirds, while the company is currently assessing the impact and determining the timeline for equipment replacement.
In today’s session, Hindalco gained as much as 4.3% to touch an intraday high of Rs 826.50. Nalco shares rallied over 5% to their day’s high of Rs 240, while Vedanta rose 3.5% to their day’s high of Rs 500 per share.
Further, the recent increase in US tariffs on steel and aluminium imports, raised from 25% to 50% effective June 4, could benefit Hindalco and its subsidiary Novelis, although India’s direct exposure to these markets remains limited. In 2024, the US imported around 28 million tonnes of steel, but India accounted for only a small fraction, with Canada and Brazil being the largest suppliers. Aluminium imports follow a similar pattern: the US brought in 5.4 million tonnes, with Canada contributing about half of that total.
In August, India requested consultations with the US under the WTO Agreement on Safeguards (AoS) concerning these tariffs. While Indian steel and aluminium exporters face limited direct impact, the higher US tariffs could indirectly support Hindalco and Novelis by reducing competition from other suppliers in global markets.
In a separate development, Vedanta said that it will invest an additional Rs 1 lakh crore in Odisha, creating over one lakh direct and indirect employment opportunities. The plan includes a Rs 2,000-crore ferro-alloys plant in Keonjhar and two new aluminium parks – one at Jharsuguda and another at a site identified by the state government, officials said on Thursday.At 10 a.m., Vedanta was trading at Rs 499, rising 3.31% from the last close on the NSE. Nalco was trading at Rs 240, gaining 5%, while Hindalco was up 4% at Rs 826 per share.
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