Shares of Vedanta, Hindalco, and Nalco rebounded by 4–13% during the week ending 16 May 2025, buoyed by progress in US-China tariff negotiations. Aluminium and copper prices on the London Metal Exchange also showed improvement, though still below recent highs. Analysts advise caution as metal markets remain volatile amid global trade uncertainties and a strengthening US dollar.
Vedanta, Hindalco, and Nalco shares surged between 4% and 13% in the week ending 16 May 2025, buoyed by renewed optimism surrounding trade negotiations between the United States and China. The market rally follows signs of easing tensions between the two global economic powers, which analysts say could positively impact base metal prices. However, caution still persists due to underlying global economic uncertainties.
Price Movements in Metal Stocks
The week saw a strong rebound in metal stocks. National Aluminium Company (NALCO) led the gains with the highest percentage increase, followed by Vedanta and Hindalco, both registering more than 7% gains compared to the previous week ending 9 May 2025. Analysts attribute this uptrend to investor optimism regarding a potential resolution in US-China trade disputes.
Base Metal Price Trends
On the London Metal Exchange (LME), aluminium prices that had fallen below $2,300 per tonne in early April due to demand concerns have recovered to around $2,475 per tonne. This is still below the $2,700+ per tonne peak seen in March 2025, but reflects a steady upward trend.
Similarly, copper prices rose from under $8,600 per tonne in early April to approximately $9,475 per tonne in mid-May. The improvements in both metals are seen as a response to reduced fears over new tariffs, though further price hikes may depend on continued progress in trade talks.
