In Thursday’s early trading, the share price of Vedanta reached a 52-week high, with gains exceeding 4.5 percent. Over the past five trading sessions, the stock has increased by over 10%.
Expanding alumina capacity will increase profitability.
The excellent commissioning of a new 1.5 MTPA expansion at Vedanta’s superior alumina refinery in Lanjigarh, Odisha, was announced. This expansion would allow the Lanjigarh refinery’s overall nameplate capacity expand from the current 2 MTPA to 5 MTPA as part of its new 3 MTPA plant.
Vedanta’s increase in alumina capacity is a significant step in the direction of total vertical integration. With this improvement, Vedanta’s profitability will increase. Vedanta noted that its 2.37 million tonnes of aluminum produced in FY24 accounted for more than half of India’s total aluminum production.
“We are delighted to commission the expanded capacity, which strengthens our raw material security and reduces costs for our Jharsuguda and BALCO aluminium smelters. It is a significant step towards 100% vertical integration and strongly positions us for sustainable growth within the global aluminium market.”
John Slaven, CEO of Vedanta Aluminium
Positive cues from China, rising LME Aluminium prices
Manufacturers of aluminum are already enjoying positive vibes. Expectations of a surge in demand from the world’s largest consumer of commodities are being raised due to some encouraging signals coming from China. There has also been considerable improvement in the prices of aluminum on the London Metal Exchange (LME). The spot price of aluminum on the LME has risen from less than $2,200 per tonne a month ago to over $2,300 per tonne, currently trading at $2,338 per tonne.
