Shares of major Indian aluminium producers rallied significantly as global aluminium prices soared, reflecting tight supply-demand dynamics in the market. The surge in stock prices comes amid a complex backdrop of international market movements and corporate developments.

Market Performance

Key Drivers

1. Global Aluminium Prices: Aluminium prices on the London Metals Exchange crossed $2,850 per tonne, driving the rally in Indian aluminium stocks.

2. Supply Constraints: Iceland's Century Aluminum announced a temporary production slowdown at its Grundartangi smelter due to equipment failure, reducing output by two-thirds.

3. US Tariff Increase: The United States raised tariffs on aluminium imports from 25% to 50%, potentially benefiting Hindalco Industries and its subsidiary Novelis by reducing competition in global markets.

Corporate Developments

Vedanta's Expansion Plans

Vedanta announced plans to invest an additional ₹1 lakh crore in Odisha, including:

• A ₹2,000-crore ferro-alloys plant in Keonjhar
• Two new aluminium parks

Hindalco's Acquisition Update

According to the latest LODR data, Hindalco Industries Limited provided an update on the acquisition of AluChem Companies, Inc. by its step-down wholly-owned subsidiary, Aditya Holdings LLC:

• A 'short-form' declaration was submitted to the Committee on Foreign Investment in the United States (CFIUS).
• CFIUS requested a 'long-form' declaration, which was subsequently submitted.
• Due to the ongoing U.S. federal government shutdown, statutory deadlines under the CFIUS review framework have been tolled.
• Once the shutdown concludes and CFIUS accepts the final filing, the review process may take up to approximately 105 days.

Hindalco's Novelis Plant Fire Recovery

Hindalco Industries provided an update on the fire incident at its wholly owned subsidiary Novelis Inc.'s plant in Oswego, New York that occurred on September 16, 2025. The company reported that extensive restoration efforts are underway to return operations to normal. The Hot Mill at the facility is expected to restart by the end of December 2025, followed by a 4-6 week production ramp-up period. Novelis has made detailed information about the incident available on its website.

The rally in aluminium stocks reflects the complex interplay of global supply dynamics, trade policies, and corporate strategies. Investors are advised to monitor these developments closely as they may continue to impact the sector's performance.

Hindalco Industries Limited , a major player in the aluminum and copper industry, has provided an update on the acquisition process of AluChem Companies, Inc. by its step-down subsidiary, Aditya Holdings LLC. The acquisition, which was initially announced on June 24, 2025, is currently undergoing review by the Committee on Foreign Investment in the United States (CFIUS), but has encountered delays due to the ongoing U.S. federal government shutdown.

Timeline of Events

Impact of Government Shutdown

The ongoing U.S. federal government shutdown, which began on October 1, 2025, has significantly impacted the review process. As a result of the shutdown:

• Statutory deadlines under the CFIUS review framework have been tolled.
• The formal acceptance of the final filing by CFIUS is pending.
• The review process is expected to take up to approximately 105 days to complete once the shutdown ends and CFIUS formally accepts the final filing.

Next Steps

Hindalco Industries has stated that it will provide further updates upon completion of the review. The company emphasized that all other details pertaining to the acquisition, as communicated in their letter dated June 24, 2025, remain unchanged.

Company Statement

In its official communication to the stock exchanges, Hindalco Industries stated, "The Company will provide further updates upon completion of the review. All other details, as per our letter dated June 24, 2025, remain unchanged."

This development highlights the potential impact of geopolitical events on cross-border corporate actions, particularly in the context of foreign investments in the United States. As the situation evolves, investors and stakeholders will be keenly watching for further updates on this significant acquisition in the aluminum industry.