Shares of National Aluminium Company Ltd (NALCO) rallied 6% to touch a day’s high of Rs 351.70 on 6th January, as aluminium prices in the global markets traded at their highest level in over three years.

Aluminium prices on the LME crossed the $3,000-per-tonne mark earlier this month for the first time since 2022.

A cap on Chinese smelting capacity and production constraints in Europe due to higher electricity prices have tightened global inventories. At the same time, demand from the construction and renewable energy sectors remains strong, according to reports.

Aluminium prices had already been on an upward trend since October last year, driven by tight supply-demand dynamics. Temporary supply disruptions at a smelter in Iceland, which affected nearly 100 kt of production, along with expectations of global monetary easing, further supported prices.

At 1:33 PM, shares of NALCO were trading 5.05% higher at Rs 347.50 on NSE.

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