Shares of aluminium companies experienced significant gains on Wednesday, August 12, following news of production cuts at a major Brazilian refinery. NALCO shares surged around 8.8% to ₹422.20 apiece in early trade, while Hindalco jumped around 3.7% to ₹1,087.95 on the NSE. Vedanta Aluminium Metal shares were also trading higher, with the stock advancing 2.9% to ₹476.95 on the NSE. The rally was triggered by Norsk Hydro ASA reporting that its Alunorte alumina refinery in Brazil had reduced production to 50% of capacity due to a shortage of natural gas.
The production cut has pushed aluminium prices to a seven-week high, with spot aluminium prices currently around USD 3,373 per tonne on the London Metal Exchange (LME), compared with an average of USD 3,565 a tonne in Q1 FY27. According to Kitco Metals, Alunorte, located in the northern Brazilian state of Pará, has an alumina production capacity of 6.3 million tonnes a year. The company estimates the financial impact in the third quarter from lower production and buying gas at prices above the contracted rate could be around USD 75 million to USD 100 million. Alunorte will start ramping up production to full capacity once gas availability normalises.
Vedanta Aluminium Metal Ltd has announced the expansion of its flagship digital e-commerce platform, Vedanta Metal Bazaar (VMB), to international markets. The platform is now available across Asia, Europe, Africa and the Americas, making it one of the first Indian digital aluminium marketplaces to enter global trade. The expansion was marked by a dedicated global customer webinar attended by over 600 participants from international markets, as reported by The Hindu BusinessLine. This global presence positions the company well to capitalise on the current market dynamics and serve customers across multiple regions.
The platform demonstrated strong performance in the 2025-26 fiscal year, processing transactions worth nearly $4.1 billion (over ₹38,000 crore) and completing over 23,000 orders. As reported by The Hindu BusinessLine, the platform has achieved significant success in the Indian market and is now being adopted by manufacturers across the country. Since its launch, Vedanta Metal Bazaar has processed cumulative sales exceeding ₹85,000 crore, with nearly half of its active customer base comprising MSMEs. The company's diversified portfolio, including alumina operations, positions it well to benefit from the current market conditions where alumina prices are at 10% of aluminium prices, compared with the average of 14-16%.
According to The Hindu BusinessLine, the expansion enables overseas enterprises and SMEs to access the same transparent, efficient and seamless buying experience that has driven strong adoption among Indian manufacturers. The current market conditions, with global alumina market estimated to be in a 1.6 MT surplus in 2026 and 0.5 MT surplus in 2027, could support alumina prices and benefit companies like NALCO, where alumina contributes 27% of its FY2026 EBIT and 44% in FY2025. As one of the world's largest aluminium producers, Vedanta Aluminium is contributing to the Hon'ble Prime Minister's vision of 'Make in India for the World' by delivering world-class, Made-in-India aluminium solutions to global markets.
