Domestic aluminium prices experienced mixed trading patterns on Wednesday, declining 1.3% intraday to hit a low of ₹294.60 per kg on the Multi Commodity Exchange (MCX) amid profit booking activities. This movement contrasted sharply with global aluminium markets, where peers on the Shanghai Futures Exchange and London Metal Exchange maintained positive momentum throughout the trading session.

Current Market Performance

January aluminium futures on MCX were trading near the ₹296.00 per kg mark during the session. Meanwhile, international markets showed stronger performance:

Aluminium prices have demonstrated remarkable strength this year, rallying nearly 23% amid positive sentiment for the metal sector driven by persistent demand-supply risks and structural market imbalances.

Supply Constraints Drive Market Optimism

Ajit Mishra, Senior Vice President of Research at Religare Broking, noted that aluminium futures are hovering near the $2,950 per tonne mark in the UK, representing their highest levels in over three years. The metal has posted an impressive 18% increase over the previous year, supported by multiple supply-side developments.

A significant market catalyst emerged from South32 Limited, the major mining and metals company headquartered in Perth, Western Australia. The company announced that its Mozal smelter in Mozambique will be placed under care and maintenance by March 2026 due to its inability to secure a new power agreement. This shutdown is expected to further shrink global aluminium supplies next year, intensifying concerns over an already under-supplied market.

China's Production Control Measures

China, the world's largest aluminium producer, has reiterated its commitment to controlling overcapacity in metal production to manage deflationary pressures affecting manufacturers. The country is set to breach its 45 million tonne output cap this year and is actively discouraging smelters from expanding production capacity in 2026.

These production control measures from the dominant global supplier are expected to maintain tight supply conditions and support price levels across international markets.

Technical Analysis and Trading Strategy

From a technical perspective, aluminium on MCX has witnessed a healthy correction after testing a high of ₹315.15. The broader technical framework clearly indicates continuation of the upward trend in the coming weeks, with prices trading significantly above key exponential moving averages and the upper Bollinger Band level.

Mishra recommends looking for stability above ₹290.00 for buying opportunities, with target objectives of ₹305.00 to ₹308.00 and maintaining stop loss levels below ₹280.00.

2026 Market Outlook

The broader market landscape indicates that tighter supply fundamentals will likely keep aluminium prices elevated through early 2026, with markets potentially transitioning into deficit conditions. Key bullish price drivers include smelter risks, low inventory levels, and structural supply constraints.

Demand growth remains consistent across multiple sectors including electric vehicles, renewable energy infrastructure, packaging, and electrification projects. Limited availability in London Metal Exchange warehouses provides another positive indicator for the metal's price trajectory.

Unless weaker macroeconomic cycles dominate market sentiment or adverse tariff impacts and trade policy shifts emerge, the primary price outlook remains positive for aluminium through the first half of 2026.

Golkonda Aluminium , formerly known as Alumeco India Extrusion Limited, has announced a series of significant corporate decisions that promise to reshape the company's financial structure and operational focus. The Board of Directors, in a meeting held on July 28, 2025, approved several key measures that will substantially alter the company's capital structure and business direction.

Authorized Share Capital Increase

In a bold move, the Board has approved an increase in the company's authorized share capital from Rs 16.00 crore to a substantial Rs 5,000.00 crore. This dramatic rise represents a 31,150% increase, signaling the company's ambitious plans for future growth and expansion.

Preferential Share Issuance

Golkonda Aluminium plans to issue up to 1,56,75,87,748 equity shares at Rs 13.39 per share on a preferential basis to six non-promoter entities. This issuance will convert existing unsecured loans worth approximately Rs 2,099.00 crore into equity. The recipients and their post-allotment shareholdings are as follows:

Post-allotment, these entities will collectively hold about 98.66% of the company's shares, significantly altering the ownership structure of Golkonda Aluminium.

Business Expansion

The Board has approved expanding the company's business operations to include manufacturing and trading of batteries, solar panels, electronic components, and electrical waste recycling. This diversification aims to position Golkonda Aluminium in the growing renewable energy and electronic waste management sectors.

Corporate Governance Changes

The company has scheduled its 37th Annual General Meeting (AGM) for August 25, 2025, to be held via video conferencing. Additionally, Golkonda Aluminium has appointed new secretarial and internal auditors:

• M/s Parul Agrawal & Associates has been appointed as the Secretarial Auditor for FY 2025-2026, subject to shareholder approval.
• Mr. Sudhish Kr. Verma has been appointed as the Internal Auditor for a five-year term starting FY 2025-2026.

Management Changes

The Board noted the resignation of Executive Director Suresh Rai, effective July 28, 2025, citing personal reasons. Mr. Rai confirmed that there were no other material reasons for his resignation.

Shareholder Approval and Next Steps

All major decisions, including the increase in authorized share capital, preferential share issuance, and business expansion, require shareholder approval at the upcoming AGM. The company has set August 18, 2025, as the cut-off date for determining shareholder eligibility for e-voting at the AGM.

These sweeping changes mark a pivotal moment for Golkonda Aluminium, potentially transforming its financial structure, ownership, and business focus. Shareholders and market observers will be keenly watching how these strategic moves unfold and impact the company's future trajectory.