Indian aluminium stocks gained momentum on Thursday as global aluminium prices on the London Metal Exchange (LME) crossed the $2,850 per tonne mark amid tightening supply-demand conditions.
Market performance
Shares of Maan Aluminium led the rally, soaring 9% to Rs 138.65, followed by NALCO, which climbed 5.10% to Rs 239.90, and Arfin India, up 2.26% to Rs 52.99. Smaller players like Hardwyn, Sharvaya Metals, and Golkonda Alum also gained between 3%–3.5%, reflecting strong sector-wide optimism.
Global backdrop
The surge in aluminium prices is attributed to a smelter shutdown in Iceland affecting over 100,000 tonnes of annual production, coupled with expectations of global monetary easing that could support industrial demand.
Hindalco’s strategic move
Adding to the sector’s momentum, Hindalco Industries Ltd. announced that its step-down wholly-owned subsidiary, Aditya Holdings LLC, is acquiring AluChem Companies Inc. The transaction is currently under review by the Committee on Foreign Investment in the United States (CFIUS), though the process has been delayed due to the ongoing U.S. government shutdown. Once resumed, the review is expected to take up to 105 days.
Broader impact
Globally, Alcoa Corporation’s shares surged 12% in the U.S. after CEO William Oplinger said current aluminium prices and Midwest premiums fully offset tariff impacts. The U.S. government’s move to double tariffs on steel and aluminium imports to 50% has also sparked concerns about supply disruptions.
India’s direct exposure to the U.S. aluminium market remains limited, but the domestic industry continues to benefit from the global price uptrend and strategic expansions by key players.
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