Aluminium stocks soared on Friday, October 24, as prices of the metal rallied sharply amid tightening global supply, driving strong investor sentiment across the sector. Shares of Hindalco Industries, National Aluminium Company Limited (NALCO), and Vedanta opened with robust gains in early trade, mirroring the strength seen in global peers such as Alcoa.
Hindalco led the rally, surging over 4 per cent to hit a record high of INR 824.65 on the NSE before paring some gains to trade 3 per cent higher at INR 815.90 apiece. NALCO followed with a 3.3 per cent rise to INR 235.86, while Vedanta climbed 2.31 per cent to INR 492.95.
For Vedanta, aluminium remains a critical growth engine. Company executives said in June 2025 that earnings before interest, tax, depreciation, and amortisation (EBITDA) from its aluminium business are expected to double to USD 4 billion this fiscal year. The sharp improvement will be driven by a higher proportion of value-added products, greater raw material self-sufficiency, and the ramp-up of new smelting and refining capacities.
Aluminium currently contributes over 40 per cent to Vedanta’s consolidated EBITDA, making it the company’s second-largest profit generator after domestic zinc operations. Last fiscal year, the aluminium division reported EBITDA of INR 17,798 crore, an 84 per cent year-on-year increase, according to The Economic Times.
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On the global front, aluminium prices on the London Metal Exchange (LME) breached USD 2,850 per tonne, further fuelling optimism in the sector. Shares of US-listed Alcoa Corp surged 12 per cent overnight after CEO William Oplinger said aluminium prices combined with the Midwest premium were sufficient to offset the impact of tariffs. According to The Motley Fool, Alcoa noted in its quarterly earnings that the Midwest premium on its US aluminium production more than compensated for the negative effects of tariffs and other costs on imports from its Canadian smelters.
Tariffs have been a major overhang for the global metals industry, and Alcoa’s resilience in mitigating their impact bolstered investor confidence in aluminium producers worldwide.
A report by Discovery Alert stated that Europe is facing an unprecedented challenge in securing environmentally sustainable primary aluminium, with energy constraints, infrastructure gaps, and supply disruptions deepening the continent’s green aluminium deficit and threatening its industrial competitiveness.
The situation has worsened following electricity-related production halts at key smelting facilities in Iceland and Mozambique, which have disrupted regional supply chains. Fastmarkets reported on Thursday that electricity-related issues at aluminium smelting facilities in Iceland and Mozambique have heightened concerns about a potential European shortage of duty-free green P1020 aluminium in 2026.
“Sources told Fastmarkets in the week to Wednesday, October 22, that this is a growing worry. Icelandic aluminium smelter Nordural Grundartangi has reduced output by two-thirds. This includes the total shutdown of one of its two potlines due to an electrical equipment failure,” operator Century Aluminium said on October 21.
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The output cut adds to Europe’s existing supply concerns, especially as South32’s Mozal smelter in Mozambique continues to face difficulties. Fastmarkets reported that the operator’s reluctance to commit to a full-year electricity supply agreement for 2026 has resulted in a stalemate with local energy provider Eskom.
With mounting concerns over global supply disruptions, robust US demand, and renewed investor optimism, aluminium stocks appear to be riding a powerful wave — one underscored by tightening fundamentals and improving profitability across the board.
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