There was a good rise in aluminum related stocks today. In fact, aluminum prices in LME reached a one-month high. Due to which there was a rise in metal stocks and this is the reason why Nifty Metal Index was seen jumping by about 2% today. Shares like Vedanta and Hindalco will be seen showing a rise of 2-3 percent today. Explaining the rise in metal stocks, CNBC-Awaaz colleague Yatin Mota said that aluminum prices in LME have reached a one-month high.
The supply of aluminum from China is expected to decrease. EU also became strict regarding aluminum imports from Russia. Demand from the aerospace and electronics sectors remains strong.
China Factor in Aluminum
China has capped aluminum production at 45 mn tonnes. Prices have increased due to reduced supply from China.
Russia Factor in Aluminum
Meanwhile, EU also became strict regarding aluminum imports from Russia. The EU is preparing to completely ban Russian aluminum. EU may soon impose new sanctions on Russia. Russia will be the second largest aluminum producer after China. Russia accounts for 5% of world aluminum production.
How was the stock’s performance?
Vedanta shares closed at Rs 450.50 on NSE with a gain of Rs 15.25 or 3.50 per cent. The 52 week high of the stock is at Rs 526.95 while the 52 week low is at Rs 249.50. The stock has shown a gain of 2.64 percent in 1 week.
Whereas shares in Hindalco closed at Rs 602.50 on NSE with a gain of Rs 10.95 or 1.85 per cent. The 52 week high of the stock is at Rs 772.65 while the 52 week low is at Rs 496.35. The stock has shown a gain of 2.25 percent in 1 week.
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