These five aluminium stocks are set to benefit from Russian giant’s production cuts
Subscribe to enjoy similar stories. Russian aluminium giant Rusal recently shook the global market with its plan to slash output by more than 6%, citing skyrocketing alumina prices and weakening domestic demand. The decision comes amid a surge in alumina prices, which have more than doubled to about $700 a tonne owing to supply disruptions in Guinea, Brazil and Australia.
With alumina prices doubling this year and aluminium prices up 11%, the production cut is set to tighten supply chains and have ripple effects across the industry. This could be a golden opportunity for Indian aluminium stocks. As global players scramble to fill the gap, Indian companies stand ready to capitalise on soaring demand and higher prices.
Here are the top five Indian aluminium stocks primed to shine amid Rusal's cutbacks. Part of the Aditya Birla Group, Hindalco and its subsidiaries are primarily engaged in producing aluminium and copper. It ranks among the top five global producers of aluminium.
It also manufactures chemicals such as calcined alumina and aluminium hydrates used in the water-treatment industry. The company has a wide product portfolio that caters to the needs of industries such as fast-moving consumer goods, aerospace, automotive, construction, and industrial and household appliances. Through its subsidiary Novelis, which is also the world's largest recycler of aluminium, Hindalco manufactures automotive and beverage can sheets in North America, South America and Europe.
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