NALCO, Hindalco Rally as Brazil Alumina Supply Cut Pushes Aluminium Prices Higher
$NATIONALUM Shares of National Aluminium Company (NALCO) and Hindalco Industries surged on Wednesday after a production cut at a major alumina refinery in Brazil raised concerns over global supply and pushed aluminium prices to a seven-week high. NALCO shares rose 7.84% to ₹418.30 in morning trade, while Hindalco gained 3.49% to ₹1,085.75. The rally followed Norsk Hydro’s announcement that its Alunorte alumina refinery in Brazil had temporarily reduced production to 50% of capacity due to limited natural gas availability. With an annual capacity of 6.3 million tonnes, Alunorte is among the world’s largest alumina refineries. Hydro said it is taking contingency measures and expects production to gradually return to normal once gas supplies improve. The supply disruption has put the spotlight on integrated Indian aluminium producers such as NALCO and Hindalco, which have operations across bauxite mining, alumina refining and aluminium production. Higher alumina and aluminium prices could support their earnings if the global supply tightness persists, making the two stocks key beneficiaries of the current commodity market developments.