Stocks

Metal stocks lose shine as aluminium prices continue to plunge

Reuters April 24 | Updated on April 24, 2018 Published on April 24, 2018

Hindalco Industries Ltd slumped as much as 9.3 per cent to Rs 231.6, its biggest intraday percentage loss since early November 2016.

Metal stocks plunged as aluminium prices continued their slide. The NSE Metal index dropped as much as 3.3 per cent, its biggest intraday percentage loss since March 23.

Aluminium prices continued to plunge on Tuesday after Washington gave US customers of Russian producer United Company Rusal more time to close out their business with the company and comply with the sanctions.

The sanctions, announced on April 6, last week drove prices for the metal to their highest since mid-2011 on fears that the global market could face shortages.

But the US Treasury Department had on Monday gave Americans until Oct. 23, instead of June 5, to wind down business with Rusal and said it would consider lifting the sanctions if Rusal's major shareholder, Russian tycoon Oleg Deripaska, ceded control of the company.

Hindalco Industries Ltd slumped as much as 9.3 per cent to Rs 231.6, its biggest intraday percentage loss since early November 2016. Vedanta Ltd dropped as much as 5.5 per cent, while National Aluminium Co Ltd crashed nearly 11 per cent to hit a one-week low.

Metal stocks rallied to its highest since mid-2011 last week on fears that the global market could face shortages as a result of the US sanctions.

Vedanta and Hindalco, among major drags on the NSE index, gained nearly 6 per cent and 10 per cent last week, while National Aluminium gained about 12 per cent.

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Published on April 24, 2018
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