Aluminium stocks jump as LME prices surge on possible Russia ban
The shares of aluminium companies - Nalco, Vedanta and Hindalco - rose on Thursday after London Metal Exchange aluminium prices surged five percent overnight.
The shares of aluminium companies like Hindalco and NALCO surged on Thursday after London Metal Exchange aluminium prices surged five percent overnight. The prices briefly spiked 7.3 percent to $2400 a ton. Hindalco was the top Nifty gainer early in the trade on Thursday.
It is noteworthy that aluminium prices declined seven percent in September, falling to a 17-month low. The metal touched a high of $4,103 in 2022 and then fell as low as $2110.
Reports suggest that the US plans to raise tariffs or impose a ban on Russian aluminium imports. Russia's Rusal is the world’s largest aluminium producer outside China and accounts for six percent of global aluminium at 70mln tons /annum.
As of now, there is no restriction on buying Russian metal. However, LME has issued a paper on the possibility of suspending it and a report by Reuters further suggests that the United States is considering a ban in response to the war with Ukraine.
With the fresh surge in COVID-19 cases, China, the world's largest producer of aluminium, has been persistent with its aggressive curbs to tame the outbreak.
Of the total copper stored in the LME, at end of September, more than 60 percent was Russian. The proportion of Russian metal has surged from 30 percent in March to 80 percent in May-August. LME copper stocks in Q3 2021 were 95 percent Russian.
(Edited by : Abhishek Jha)
First Published: Oct 13, 2022 12:20 PM IST
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