Hindalco shares jump over 4%, hitting record high; NALCO, Vedanta rally too; why aluminium stocks are surging

Hindalco stock rallied over 4% to hit an all-time high of ₹824.65 on the NSE.

Last seen, Hindalco stock was trading around 3% higher at ₹815.90 apiece on the NSE. NALCO was trading over 3.3% higher at ₹235.86. Vedanta was up 2.31% at ₹492.95.

For Vedanta, the aluminium business is a significant contributor to the company's overall profitability. In June 2025, Vedanta’s senior executives said earnings before interest, tax, depreciation, and amortisation (EBITDA) of its aluminium business are expected to double to $4 billion this fiscal year.

The sharp financial improvement will be anchored by a greater share of value-added products, self-sufficiency in raw materials, and the start of new smelting and refining capacities.

Aluminium prices on the London Metals Exchange (LME) crossed the mark of $2,850 per tonne.

The Motley Fool reported that while announcing its quarterly earnings, Alcoa, one of the largest producers of aluminium globally, wrote that the Midwest premium it earned on US aluminum production more than offset the negative effect of tariffs and other costs on aluminum imports. Specifically, it pointed to shipments from its smelters located in Canada to the US clientele.

Tariffs are a major concern across the broader metallurgy sector, so the company's apparent resilience in the face of them boosted investor sentiment.

According to a report by Discovery Alert, Europe faces an unprecedented challenge in securing environmentally sustainable primary aluminium, creating ripple effects across manufacturing sectors and climate commitments. The continent's green aluminium deficit in Europe stems from a convergence of energy constraints, infrastructure limitations, and supply disruptions that threaten industrial competitiveness.

The crisis has intensified following recent production halts at key facilities, with electricity-related problems at aluminium smelting operations in Iceland and Mozambique disrupting regional supply chains. These developments highlight Europe's growing vulnerability in securing duty-free green P1020 aluminium supplies.

Fastmarkets on Thursday reported that electricity-related problems at aluminium smelting facilities in Iceland and Mozambique have intensified concerns over a potential European deficit in 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," Fastmarkets reported.

That drop in output adds to pre-existing European concerns over supplies. This is due to growing anxiety over supplies from South32’s Mozal smelter in Mozambique. Operator South32’s unwillingness to commit to a full-year electricity supply agreement for 2026 has led to a stalemate with local energy provider Eskom, according to multiple market participants.