Capacity expansion likely trigger for Hindalco Industries' stock

The scenario for Hindalco and its US subsidiary Novelis is promising although Novelis has been impacted by tariffs

Non-ferrous metal prices have strengthened 1-5 per cent month-on-month (M-o-M) as well as year-on-year (Y-o-Y) due to geopolitical tensions and tight London Metal Exchange (LME) inventories.

 

Higher NATO defence outlays from its EU members will also create long-term demand. India’s domestic demand for aluminium and copper is expected to grow very strongly.

 

The long-term demand will be driven by electric vehicles (EVs), electrification, packaging, transport, renewable energy (RE) systems and construction sectors.

 

However, Novelis’ near term may be under pressure. US prices have surged on tariff threats and may moderate as those ease. A US-Canada trade agreement would support Novelis