Why aluminium prices are unlikely to fall
- Lower aluminium prices along with elevated energy costs are a threat to the margins of Hindalco and Nalco
Shares of aluminium producers such as Hindalco Industries Ltd and National Aluminium Company Ltd (Nalco) have moved in tandem with the demand-supply dynamics of the metal. These shares touched 52-week highs in March when supply risks arose from the Russia-Ukraine war. However, shares of Hindalco and Nalco plummeted later due to muted demand conditions and are now 32-40% below their 52-week highs.