National Aluminium and Hindalco are among the five top losers on the BSE since morning. Nalco is in fact the top loser, going down over 6% to Rs.60.10.
The news is that the Trump administration is ready to remove sanctions on Russian billionaire Oleg Deripaska’s aluminum company, United Co. Rusal, after reaching an agreement to significantly reduce his ownership stake.
Deripaska will remain under U.S. sanctions and his property will remain blocked, but Treasury intends to remove financial restrictions on Rusal, En+ Group Plc and JSC EuroSibEnergo. The move will take effect in 30 days unless Congress blocks the action.
This lifting of sanctions would mean that the supply of the metal will now once again increase globally; this has already brought down the price of the metal on the LME yesterday night.
China's biggest aluminium producers are scheduled to hold a meeting on Friday in the southern region of Guangxi to discuss slumping demand and falling prices.