Nifty Metal Index Jumps 3.2% as Aluminium Prices Surge

On March 5, the Nifty Metal index rallied up to 7% following broader gains on Dalal Street. The benchmark indices Nifty and Sensex jumped over 0.5% each in today's deals amid value buying and a weaker US dollar. The rise in Asian peers also contributed to the gains.

Key Gainers

The metal index was led by National Aluminium Company (NALCO), which surged 7%, followed by Hindalco Industries at 6.5% and Vedanta at 4.5%. NMDC, Tata Steel, Hind Copper, SAIL, and Welspun Corp also gained between 2.5-3.5% each. JSW Steel, Hindustan Zinc, Jindal Steel, APL Apollo Tubes, and Jindal Stainless advanced over 1% each.

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Aluminium Prices Climb

Aluminium prices continued to climb on March 5 as supply concerns intensified following disruptions in the Middle East. Aluminium Bahrain (Alba) declared force majeure on March 4, suspending shipments due to reduced marine traffic through the Strait of Hormuz. The most-active aluminium contract on the Shanghai Futures Exchange surged 3.55% to 25,365 yuan ($3,683.72)** per metric ton.

Global Aluminium Supply Concerns

The Gulf region plays a significant role in global aluminium production, accounting for roughly 8% of the world's supply last year. With two major producers facing operational disruptions, traders are increasingly factoring potential shortages into prices. Other base metals, including Shanghai copper and copper on the London Metal Exchange, also edged higher in early trading.

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