Aluminium prices plummet after US eases sanction on Rusal

Aluminium prices plummet after the US government extended the deadline for the US customers trading with Rusal to comply with the sanctions imposed on the company. Further, the US government may consider lifting of the ban if Rusal’s major shareholder Oleg Deripaska ceded control of the company.

Rusal is one of the largest aluminium producer in the world, it contributes around 7 per cent of the total aluminium produced in the world.

Indian metal stocks also took a hit following this development and stocks such as Hindalco and National Aluminium Company (Nalco) tanked around 10 per cent each in today’s trading session. Both Hindalco and Nalco have weightage of 13.63 per cent and 1.85 per cent, respectively in NIFTY metal index.

Technical view on Nifty Metal index

After hitting a reversal Doji on March 23, Metal index witnessed a gradual upside and subsequently gave a downward sloping trendline breakout at 3,795 levels. The index gave a pullback in the form of a gap-down opening on April 24 and corrected some more up to 38.2 per cent retracement and bounced back. Below 3,730 and 3,675 followed by 3,614 which will act as support, while 3,855 followed by 3,955 will act as resistances.


Following are aluminium prices in global market