Athira Sethu,
Kochi, 12 August 2026
The stocks of Indian aluminium companies such as NALCO, Hindalco Industries and Vedanta Aluminium may continue to be in focus on Wednesday, August 12 following the reduction of aluminium production in Brazil due to natural gas shortage.
Norwegian company, Norsk Hydro, which produces aluminium and energy products, said that it had reduced its output in the Alunorte alumina refinery in Brazil because of the problem with its gas supplier, CELBA. The company has decided to operate its alumina refinery at 50% of its capacity because of gas shortage.
Alunorte is the biggest alumina refinery in the world. This refinery produces about 6.3 million tonnes of alumina annually. This ore is produced from bauxite. The ore is the raw material for the production of aluminium. It takes about two tonnes of alumina to produce one tonne of aluminium.
According to the company’s representatives, they are doing their best to resolve the issue. They are purchasing gas from the market and looking for other suppliers.
There is already a reduction in the production that has caused aluminium prices to increase. Aluminium prices are already at a seven-week peak as investors see the potential for tighter supply of aluminium worldwide.
The disruption is likely to be good for Indian aluminium companies, since increased aluminium prices will lead to improved sales and profit margins.
The NALCO company will stand to benefit from both the increase in the price of aluminium and alumina prices. NALCO is an integrated aluminium producer that produces its own bauxite mines, alumina refinery, and aluminium.
The Hindalco Industries will also benefit from the increase in the price of aluminium. Hindalco Industries is an integrated aluminium producer that produces its own mining and alumina refining. This reduces its dependency on external markets for alumina.
The Vedanta Aluminium company will also benefit from the increase in the price of aluminium.
However, the gain to be reaped by the Indian firms would depend upon how long the aluminum prices would be elevated.
Succinctly put, the disruption to Brazil would have lowered the alumina supply. If the global supply remains low, then there could be continued strength in aluminum prices. This could enable Indian aluminum firms to fetch higher prices for their goods.
Thus, NALCO, Hindalco, and Vedanta Aluminium would continue to be in the limelight in view of developments in global aluminum and alumina markets.
