NALCO Shares Skyrocket to Record High as Aluminum Prices Breach $3,000 Mark

COMMODITIES

Overview

National Aluminum Company Ltd. (NALCO) shares soared to a new record high, climbing 6% on Tuesday. The surge is fueled by global aluminum prices crossing $3,000 per tonne, the highest in over three years. Supply constraints in China and Europe, coupled with strong demand from construction and renewables, are driving the rally.

National Aluminum Company Ltd. (NALCO) shares surged as much as 6% on Tuesday, January 6, reaching a new record high. This marks the fourth consecutive day of gains for the stock, which has advanced in five of the last six trading sessions.

Global Aluminum Rally Fuels NALCO Gains

Global aluminum prices are trading at their highest level in over three years. Prices on the London Metal Exchange (LME) surpassed $3,000 per tonne earlier this month, a level not seen since 2022. Factors contributing to this surge include capped smelting capacity in China and production constraints in Europe due to elevated electricity prices. Demand from the construction and renewables sectors also remains robust, according to market observers.

Market Outlook and Analyst Views

NALCO shares are currently trading with gains of 4.8% at ₹346.8, having touched an intraday high of ₹350.35. The stock has seen a remarkable 30% rise in the past month and a 74% jump over the last 12 months. Despite the current bullish trend, 11 analysts covering NALCO show a consensus price target that implies a potential 19% downside from current levels. Eight analysts recommend a "buy," two suggest "hold," and one rates the stock as "sell."

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