Shares of National Aluminum Company Ltd. (NALCO) surged as much as 6% on Tuesday, January 6, extending its gains to make a new record high.This is the fourth straight day of gains for the stock that has gained in five out of the last six trading sessions.
Aluminum prices in the global markets are trading at the highest level in over three years, with prices on the LME crossing the mark of $3,000 per tonne for the first time since 2022 earlier this month.
A cap on Chinese smelting capacity and constraints to European production due to higher electricity prices have impacted global inventories, while demand outlook from the construction and renewables sector also remains high, as per a Bloomberg report.CNBC-TV18 had also highlighted Aluminum’s price surge when it had crossed the mark of $2,500 a tonne in October last year, citing tight supply-demand dynamics, as a smelter in Iceland was put out of supply temporarily, affecting production worth as much as 100 kt, along with global monetary easing prospects as well.
Aluminum prices in the global markets are trading at the highest level in over three years, with prices on the LME crossing the mark of $3,000 per tonne for the first time since 2022 earlier this month.
A cap on Chinese smelting capacity and constraints to European production due to higher electricity prices have impacted global inventories, while demand outlook from the construction and renewables sector also remains high, as per a Bloomberg report.CNBC-TV18 had also highlighted Aluminum’s price surge when it had crossed the mark of $2,500 a tonne in October last year, citing tight supply-demand dynamics, as a smelter in Iceland was put out of supply temporarily, affecting production worth as much as 100 kt, along with global monetary easing prospects as well.
11 analysts have coverage on NALCO, of which eight have a “buy” rating, two say “hold”, while one has a “sell” rating. The consensus estimates of price target implies a potential downside of 19% from current levels.
Shares of NALCO are marginally off the highs of the day, but are trading with gains of 4.8% at ₹346.8. The stock had made an intraday high of ₹350.35, having gained 30% in the last one month, and has risen 74% in the last 12 months.
