Hindalco, Nalco in focus as China raises alumina prices

MUMBAI: Metals witnessed a sharp spurt in Tuesday’s trade, particularly with shares of aluminium manufacturers Hindalco and Nalco hogging the spotlight on speculation of rise in Chinese alumina prices. ( Watch ) Societe Generale’s David Wilson, while speaking to ET Now said that hike in aluminium prices is more due to speculation activity. He added that one should be cautious of reading too much into Chinese consumption. According to Wilson, alumina shortage is a short term issue than a long term one. Aluminum Corp of China Ltd (Chalco) has raised spot alumina prices by 5.7 per cent to 2,800 yuan ($US410.1) per tonne from December 31 – the fifth time in the last 3 months. Shares of Hindalco surged 7.61 per cent, or Rs 12.45, to Rs 175.95 on the NSE while that of Nalco surged 16.39 per cent, or Rs 71.90, to Rs 510.65. B L Bagra, Director, Finance, NALCO, has said that the government is planning to split NALCO into NALCO Aluminium, NALCO Power and NALCO International at an opportune time. The company is planning to raise production of aluminium and aluminia going forward.