Hindalco, NALCO, Vedanta Aluminium shares decline up to 5%, here is why aluminium makers are falling

Shares of the country's leading aluminium producers such as Hindalco, National Aluminium and Vedanta Aluminium were facing selling pressure in trade on Tuesday, June 16. The country's largest aluminium producer, Hindalco's share dropped as much as 4.7%, National Aluminium Company's shares fell as much as 5.7% and Vedanta Aluminium Metal stock was locked in a 5% lower circuit.

These shares came under selling pressure after aluminium prices in international markets dropped in the aftermath of United States and Iran agreeing to a peace deal. Aluminium futures on the London Metal Exchange (LME) dropped 4.4% to $3,379, its lowest level since the war between US and Iran started in late February.

The memorandum of understanding is scheduled to be officially signed on Friday in Switzerland.

The reopening of the Strait of Hormuz, where shipping has been largely suspended since the end of February, would improve prospects for aluminium exports from the Gulf, Reuters report added.

Producers in the region, typically account for around 9% of global supply, use the crucial waterway to ship their metal to global markets and import raw materials.

Shares of aluminium producers came under buying interest in the aftermath of the war as aluminium prices in global as well as domestic markets surged to near all-time highs amid trade disruptions after Iran blocked the Strait of Hormuz, an important trading route for everything from minerals and chemicals to crude oil.

Moreover, Iran's Revolutionary Guard launched missile and drone strikes against major aluminium plants in the UAE (Emirates Global Aluminium) and Bahrain (Alba) on March 28, 2026, causing "significant damage" and injuries. The attacks, targeting facilities allegedly linked to the US military, caused global aluminium price spikes, news agency AFP reported.

EGA reported that the Al Taweelah smelter sustained significant damage, with full restoration expected to take up to 12 months, though some operations might resume earlier.

As of 11:13 am, Hindalco was top loser in the NIFTY50 index, down 3.34%, NALCO traded 5.45% lower at ₹361.55 while Vedanta Aluminium shares were locked in a 5% lower circuit at ₹471.