EU-India FTA Could Improve Indian Aluminium Access, but CBAM Still Limits the Upside

Hindalco Industries

The EU-India FTA could improve the position of Indian aluminium suppliers in Europe. The deal would reduce EU tariffs on Indian base metal imports to zero from 10pc. That change could give Indian aluminium exports a stronger commercial opening. As a result, the EU-India FTA may improve competitiveness for producers such as Hindalco and Vedanta.

The tariff change matters because Indian suppliers have faced a clear disadvantage in Europe. Duty-free suppliers such as Norway, Iceland, and Canada already held an edge. Removing the tariff could narrow that gap. Therefore, Indian aluminium suppliers may enter the EU market on more equal terms.

However, the agreement does not remove every barrier. EU CBAM will still apply to imported goods, even after the tariff cut. That means carbon costs will remain a major factor in future trade economics. Consequently, the EU-India FTA improves access, but does not create a fully open market.

Indian Aluminium Exports Could Gain on Tariffs but Still Face Carbon Pressure

Indian aluminium exports could benefit immediately from lower tariff friction. Price-sensitive buyers in Europe may find Indian material more attractive under a zero-duty regime. That could support better trade flows from India to the EU. Meanwhile, producers are still waiting for final clarity on aluminium in the completed legal text.

CBAM remains the deeper long-term issue. The European Commission has already confirmed that the FTA offers no exemption from the carbon border measure. Importers will still face carbon-related obligations under EU climate policy. Therefore, Indian aluminium suppliers must think beyond tariffs and prepare for emissions competitiveness.

This is why industry optimism remains cautious rather than aggressive. Lower tariffs help, but they do not neutralize non-tariff costs. A trader in the article described CBAM as a continuing trade barrier. As a result, the full commercial benefit of the EU-India FTA may prove smaller than the headline suggests.

EU-India FTA Arrives as Indian Aluminium Exports to Europe Have Already Declined

Indian aluminium exports to the EU have already weakened in recent years. Rising domestic demand in India has reduced export availability. Lower export incentives have also weighed on overseas shipments. Therefore, the industry is entering this trade opportunity from a lower export base.

The recent numbers show that decline clearly. India’s primary aluminium exports to the EU fell sharply in 2024 from the previous year. Shipments in January to November 2025 also remained subdued. Consequently, the EU-India FTA may help stabilise exports first before driving a major surge.

The real opportunity will depend on how Indian producers balance three pressures. They must manage domestic demand, EU carbon costs, and international price competition. Tariff relief helps with one of those problems. However, it does not solve the other two. Therefore, Indian aluminium suppliers may gain an edge, but only within tighter structural limits.

The Metalnomist Commentary

This deal improves trade access, but it does not remove the real future test. European aluminium trade will increasingly depend on carbon performance as much as tariff policy. For Indian suppliers, the EU-India FTA is helpful, but CBAM will still decide who wins long term.

Hindalco Record Earnings Highlight Indian Aluminium Strength Despite Novelis Drag

Hindalco

Hindalco record earnings in the 2026 financial year show the strength of India’s aluminium market, even as problems at Novelis weighed on net profit. The Indian aluminium producer posted record revenue and Ebitda for both the full year and final quarter.

Hindalco record earnings were driven mainly by domestic aluminium operations. Full-year Ebitda rose by 7.3% to just over 380bn rupees, while revenue increased by 15% to Rs2.8 trillion.

Hindalco record earnings also extended into the fourth quarter. Ebitda reached Rs112bn in January-March, up 9% from a year earlier, while revenue rose by 20% to Rs781.3bn.

The result shows that Hindalco’s core Indian aluminium business remains resilient. However, the group’s profit performance was held back by the outage at Novelis’ Oswego hot-rolling mill in the US.

Domestic Aluminium Businesses Drive Record Performance

Hindalco’s upstream aluminium business delivered record earnings during the year. Full-year Ebitda rose by 16% to Rs188.8bn, while fourth-quarter Ebitda increased by 13% to Rs54.5bn.

This performance reflects strong operating leverage across Hindalco’s integrated aluminium chain. Upstream aluminium remains highly sensitive to metal prices, energy costs, alumina integration and domestic demand.

The downstream aluminium business also reached a record level. Full-year Ebitda rose by 55% to Rs9.8bn, while fourth-quarter Ebitda increased by 16% to Rs2.6bn.

That growth is strategically important. Downstream aluminium gives Hindalco higher-value exposure to rolled, extruded and fabricated products used in packaging, transport, construction, electrical and industrial markets.

India’s aluminium demand remains structurally supported by infrastructure growth, electrification, packaging consumption, renewable energy and manufacturing expansion. Hindalco’s record results show how domestic demand can offset weaker or more disrupted international operations.

Novelis Outage and Weak Copper TCs Weigh on Profit

Hindalco’s full-year net profit fell by 16.3% to Rs133.9bn. Fourth-quarter net profit dropped by nearly 51% to Rs26bn.

The main pressure came from the stoppage of Novelis’ Oswego hot-rolling mill in September. The outage disrupted US aluminium sheet supply and reduced Hindalco’s consolidated profitability.

Novelis has started commissioning the Oswego hot mill after major repairs. Coils are expected to come off the mill within the next few weeks, which should support a recovery in shipments and earnings.

The Oswego restart matters because Novelis is a major supplier of flat-rolled aluminium products to automotive, beverage can and industrial markets. A smoother ramp-up would reduce pressure on Hindalco’s global aluminium platform.

Hindalco’s copper business showed a mixed picture. The division posted record quarterly Ebitda of Rs9.1bn in the final quarter, but full-year Ebitda fell by 26.6% to Rs28.09bn.

The full-year decline reflected lower sales and weaker treatment and refining charges. This mirrors the wider copper market, where tight concentrate supply has reduced smelter economics even as copper demand remains strategically strong.

Hindalco therefore enters the new financial year with a strong domestic aluminium base, improving downstream earnings and a potential Novelis recovery. But copper smelting margins and the pace of Oswego’s restart will remain important earnings variables.

The Metalnomist Commentary

Hindalco’s results show that India’s aluminium demand is strong enough to deliver record operating earnings, even when global assets face disruption. The key upside now depends on Novelis’ Oswego restart and whether Hindalco can keep expanding higher-margin downstream aluminium while copper TC pressure continues.

India Aluminium BIS Certification Raises Quality Bar for Domestic Supply

BIS

India aluminium BIS certification is becoming a formal market requirement as the government enforces the aluminium and aluminium alloy products Quality Control Order 2026. The order mandates Bureau of Indian Standards certification for a wide range of aluminium products sold in the domestic market.

The regulation took effect on 11 March 2026 and replaces the earlier 2025 order. The Ministry of Commerce and Industry introduced the measure to improve product quality, strengthen consumer safety, and standardise aluminium products across India’s industrial supply chain.

India aluminium BIS certification will apply to products such as rods, bars, sheets, and composite panels. These materials are used across infrastructure, engineering, electrical equipment, packaging, aerospace, and household applications, making the order significant for both producers and downstream manufacturers.

Aluminium Producers Face New Compliance Timelines

Manufacturers must now secure a valid BIS licence before selling covered aluminium products in India. Certification will follow Scheme-I of Schedule II under the BIS regulations, 2018, which requires compliance with relevant Indian Standards and testing procedures.

The government has introduced phased deadlines to reduce disruption across different enterprise sizes. Critical aluminium products face immediate compliance, while general engineering aluminium products will follow a staggered schedule.

Large enterprises must comply by 1 December 2026. Small enterprises will have until 1 March 2027, while micro enterprises must comply by 1 June 2027. This phased structure gives smaller manufacturers more time to adapt their testing, documentation, and quality control systems.

Quality Control Order Reshapes India’s Aluminium Market

India aluminium BIS certification will likely raise the entry barrier for low-quality or inconsistent aluminium products. This could support more disciplined domestic production and reduce the circulation of non-standard material in key industrial sectors.

The order also has trade and procurement implications. Importers and domestic suppliers will need to align product specifications with Indian Standards before selling into the local market. However, exemptions remain for exports and research activities.

The R&D exemption allows up to 200kg of annual imports without BIS certification, provided the material is not sold and is later disposed of as scrap. This gives laboratories, universities, and product development teams limited flexibility while keeping commercial sales under the certification framework.

For India’s aluminium industry, the order signals a stronger policy focus on quality, traceability, and industrial standardisation. As demand grows from infrastructure, power equipment, packaging, aerospace, and manufacturing, certified aluminium supply will become more important for competitiveness and reliability.

The Metalnomist Commentary

India’s aluminium Quality Control Order is not just a standards update. It is a market-filtering mechanism that could reward compliant producers and pressure weaker suppliers out of higher-value industrial channels.

Russian Aluminium Dominates LME Stocks Amid Decline in Indian-Origin Metal

Russian Aluminium Dominates LME Stocks Amid Decline in Indian-Origin Metal

The proportion of Russian aluminium stored in London Metal Exchange (LME) warehouses surged to 65% by the end of July, despite the overall quantity of Russian metal remaining largely stable. This shift in market share is primarily due to a significant reduction in the stock of Indian-origin aluminium, which depleted over the course of the month.

According to the latest report from the LME, Russian-origin aluminium on-warrant stocks totalled 233,775 tons at the end of July, marking a modest increase of 1,215 tons compared to the previous month. However, this relatively small increase led to Russian aluminium accounting for 65% of the total on-warrant LME stocks, a significant jump from 50% at the end of June. In contrast, the total on-warrant LME stocks fell to 359,250 tons, representing a 23% decline from the start of the month.

The LME distinguishes between two types of Russian aluminium warrants: Type-1, for metal stored before the LME's ban on Russian metals produced on or after April 13, and Type-2, which pertains to metal subject to trade restrictions imposed after that date. Type-1 Russian warrants decreased by 1.9% over the month to 225,450 tons, while Type-2 warrants increased from 2,775 tons to 8,325 tons.

Meanwhile, Indian-origin aluminium stocks in LME warehouses fell sharply, down by 37% to 119,575 tons by the end of July. This decline reduced the Indian share of total on-warrant LME stock to one-third, down from 41% at the end of June.

Earlier this year, Russian aluminium accounted for as much as 90% of LME stocks as Western consumers increasingly self-sanctioned against Russian metal in response to geopolitical tensions. This led to calls for a complete ban on Russian metal deliveries, which was eventually implemented by the LME in April, following new sanctions from the UK and US governments.

Nalco Record Profit Highlights India’s Aluminium Market Strength

Nalco

Nalco record profit in FY2025/26 shows how stronger production volumes, higher aluminium prices and improved operating efficiency lifted India’s state-owned aluminium producer to a new earnings high. The company reported profit of 58.16bn rupees for the year to March, up 9.2% from a year earlier.

Nalco record profit was supported by revenue growth of 6.3% to Rs178.43bn. In the final quarter of the financial year, profit rose by 7% to Rs17.18bn, while revenue increased by 7.9% to Rs51.03bn.

Nalco record profit also reflects stronger market realisations. Three-month aluminium prices on the London Metal Exchange averaged $2,780/t through the financial year, up from $2,553/t in the previous year.

The result reinforces the importance of India’s aluminium value chain. Higher domestic metal sales and stable alumina output strengthen Nalco’s position as India expands infrastructure, power, transport, packaging and industrial manufacturing.

Record Aluminium Output Supports Domestic Demand

Nalco set new records for aluminium production and sales during the year. Cast aluminium production reached 472,000t, while aluminium sales totalled 474,000t.

Domestic sales reached a record 461,000t. This is strategically important because it shows that India’s internal aluminium demand remains strong enough to absorb most of Nalco’s output.

Aluminium consumption in India is tied to several structural growth sectors. Power transmission, construction, transport, packaging, electrical products and manufacturing all require more aluminium as industrial activity expands.

Higher domestic sales also reduce exposure to export volatility. For Nalco, a larger Indian customer base can improve sales stability when global trade flows are affected by tariffs, premiums or regional demand swings.

The production record also points to better operating execution. Higher volumes matter only when supported by plant reliability, cost discipline and stable raw material flows.

Nalco said stronger production, improved realisations and operating efficiency across business units drove the performance. That combination allowed the company to capture better market pricing while expanding output.

Alumina and Price Realisations Strengthen Earnings Base

Nalco also produced 2.3mn t of alumina hydrate and recorded 1.4mn t of alumina sales. Alumina remains central to the company’s integrated aluminium model.

Integrated alumina supply gives aluminium producers stronger cost control. It can also protect margins when external alumina markets tighten or when smelters face higher raw material costs.

The increase in LME aluminium prices was another major earnings driver. Higher benchmark prices improved realisations and helped lift profits even as cost pressures remained a risk across energy-intensive metal production.

For India’s aluminium sector, Nalco’s results show the value of scale and integration. Producers with bauxite, alumina and smelting capacity can benefit more directly when aluminium prices rise and domestic demand expands.

The company’s record performance also supports India’s broader industrial policy goals. Aluminium is essential for electrification, infrastructure, transport lightweighting, renewable energy equipment and downstream manufacturing.

Nalco’s challenge now is to sustain output discipline and margin strength if aluminium prices become more volatile. The market remains exposed to energy costs, global trade measures and supply disruptions.

The Metalnomist Commentary

Nalco’s record profit shows that India’s aluminium market is gaining strength from domestic consumption, not only export opportunity. The strategic advantage will belong to producers that combine integrated alumina supply, reliable smelting operations and exposure to India’s expanding industrial base.

Hindalco Record Earnings FY25 Reach All-Time High with Strong Domestic Performance

Hindalco

Hindalco record earnings FY25 achieved unprecedented levels as the Indian aluminium producer posted its highest-ever EBITDA of Rs 35,500 crores ($4.1 billion) for the financial year ending March 2025. The Hindalco record earnings FY25 results show EBITDA rising 38% from the previous year on revenues climbing 10% to Rs 2.38 trillion, with the final quarter also reaching a new quarterly record driven by strong domestic performance and lower input costs across both aluminium and copper operations.

Upstream Aluminium Business Delivers Exceptional Growth

Hindalco record earnings FY25 were primarily driven by exceptional performance in the upstream aluminium business, which posted EBITDA of Rs 16,262 crores, representing a remarkable 78% increase from the previous year. The fourth quarter upstream aluminium EBITDA reached Rs 4,838 crores, up 79% year-on-year, driven by lower input costs and favourable macros, with industry-best margins of 47%. The downstream aluminium business also contributed positively with EBITDA rising 16% to Rs 633 crores for the full year.

Meanwhile, the strong performance reflects successful cost management and operational efficiency improvements across Hindalco's integrated aluminium operations. The company secured the Meenakshi coal mines with annual capacity of 12 million tonnes, boosting resource securitization and strengthening its cost competitiveness. Lower input costs, particularly coal and power expenses, significantly improved profitability margins throughout FY25.

Copper Business Achieves Record Performance Levels

However, Hindalco's copper business also delivered outstanding results with record EBITDA of Rs 3,025 crores, up 16% from the previous year, backed by improved volumes and higher realizations. Domestic Copper Rod sales crossed 100 KT for the first time, demonstrating strong market demand for value-added copper products. The copper business benefited from robust domestic sales and higher by-product realizations throughout the financial year.

Therefore, the integrated approach across both aluminium and copper operations created synergistic benefits that enhanced overall profitability. Hindalco's focus on value-added products in both segments supported premium pricing while maintaining strong volume growth. The company's strategic investments in expanding copper production capacity positioned it well to capture growing domestic demand.

Strong Financial Metrics Support Future Growth Plans

Furthermore, Hindalco improved its financial strength significantly during FY25, reducing its consolidated net debt to EBITDA ratio to 1.06x from 1.21x a year earlier. FY25 Consolidated PAT reached Rs 16,002 crores, up 58%, while Q4 consolidated PAT increased to Rs 5,284 crores, up 66% over the prior year period. These strong cash generation capabilities support the company's ambitious expansion plans across both aluminium and copper segments.

As a result, Hindalco announced capital expenditure targets of Rs 7,500-8,000 crores for the current fiscal year to fund strategic growth initiatives including alumina refinery expansion, aluminium smelter capacity additions, and copper smelter expansion projects. The company's subsidiary Novelis also delivered resilient performance with strong shipments in beverage packaging applications, contributing $683 million in net income, up 14% over the previous year.

The Metalnomist Commentary

Hindalco's record FY25 performance exemplifies how integrated metals producers can leverage operational excellence and strategic resource security to achieve exceptional financial results, particularly when supported by favorable macroeconomic conditions and lower input costs. The company's success in both aluminium and copper segments demonstrates the value of diversified metals portfolio approach, while strong cash generation provides solid foundation for the ambitious growth investments planned across both business segments.

India Aluminium Wire Rod Imports Face CVD Sunset Review on Malaysian Supply

India's Trade

India aluminium wire rod imports from Malaysia are under renewed trade scrutiny after the Directorate General of Trade Remedies started a sunset review of existing countervailing duties. The review comes ahead of the current duty’s expiry on 23 September.

India aluminium wire rod imports are strategically important because wire rod is a key semi-finished aluminium product for electrical conductors, cables, industrial wire and downstream manufacturing. Domestic producers argue that subsidised Malaysian supply could continue or recur if the duty expires.

India aluminium wire rod imports from Malaysia have been subject to countervailing duties since September 2021. The original levy followed a probe launched in June 2020 into alleged government subsidies supporting Malaysian producers.

Hindalco Industries, Vedanta and Bharat Aluminium Company filed the application that triggered the review. DGTR said the applicants represent a majority of India’s domestic output of the product covered by the duty.

Domestic Producers Warn of Subsidy and Trade Diversion Risk

The review covers aluminium wire and rod in coil form with diameters of 9-13mm. These products are used across electrical, cable and industrial supply chains, making them important to India’s aluminium downstream sector.

The applicants argue that Malaysian producers continue to benefit from government support. They identified 64 subsidy programmes, including 23 from the original investigation and 41 new schemes.

The alleged support includes tax breaks, export grants, preferential financing and below-market land and power rates. If confirmed, these measures could allow Malaysian producers to offer aluminium wire rod at artificially competitive levels.

Indian producers warned that removing the duty could harm the domestic industry. Their concern is that subsidised imports would pressure local pricing, reduce utilisation and weaken investment confidence in downstream aluminium capacity.

The case also includes a wider trade-flow risk. Recent increases in US Section 232 aluminium tariffs could divert Malaysian export volumes away from the US and toward India if the CVD lapses.

This matters because aluminium trade measures in one region can quickly reshape flows elsewhere. When one market becomes harder to access, exporters often look for alternative destinations with weaker trade barriers.

Review Could Shape India’s Downstream Aluminium Protection

The period of investigation for the sunset review is July 2024-December 2025. DGTR will assess whether the duty should be extended, modified or withdrawn.

Exporters, importers, users and the Malaysian government have been invited to submit comments through DGTR’s SETU portal. Their responses will help determine whether subsidised imports remain a material risk.

The outcome will matter for India’s aluminium value chain. Domestic producers want protection from subsidised competition, while downstream users may focus on supply availability and input cost.

India has been trying to strengthen local manufacturing across metals, electrical infrastructure and industrial materials. Maintaining fair competition in aluminium wire rod supports that policy direction, especially as demand grows from power transmission, cables, construction and manufacturing.

However, trade protection also needs balance. If duties raise input costs too much, downstream processors can become less competitive. The review will need to weigh domestic producer protection against the needs of users that rely on wire rod supply.

The case shows how aluminium is becoming more exposed to trade policy. Tariffs, subsidies, countervailing duties and regional trade diversion are now central to market positioning, not secondary issues.

The Metalnomist Commentary

India’s CVD review shows that aluminium downstream products are becoming part of a wider trade-defence strategy. The key issue is whether India can protect domestic wire rod capacity without raising costs for cable, conductor and electrical manufacturing supply chains.

India Aluminium Flat-Rolled Products Capacity Expands With Smel Sambalpur Plant

Smel Steel Structura

India aluminium flat-rolled products capacity is set to expand as Smel Steel Structural prepares to commission its new FRP and foil plant in Sambalpur, Odisha, by June. The facility will add 78,000 t/yr of aluminium product capacity to India’s downstream manufacturing base.

The Smel aluminium plant will have nameplate capacity of 60,000 t/yr for flat-rolled products with thicknesses of 0.3-4mm. It will also produce 18,000 t/yr of aluminium foil in the 6-40 micron range.

India aluminium flat-rolled products demand is rising across packaging, electrical, automotive, industrial and consumer goods sectors. Smel’s project is aimed at reducing import dependence while moving Shyam Metalics further into higher-value aluminium products.

The plant is at an advanced stage and is scheduled for commercial commissioning by June 2026. Its start-up will strengthen India’s ability to supply precision-engineered aluminium products from domestic capacity.

Downstream Aluminium Push Targets Higher-Value Markets

The Sambalpur plant will expand Shyam Metalics exposure beyond basic metals into value-added aluminium products. Flat-rolled products and foil typically serve higher-margin markets than upstream or semi-finished materials.

Packaging is likely to be a key demand channel. Aluminium foil is widely used in food, pharmaceuticals and consumer packaging, where barrier performance, light weight and hygiene are critical.

Electrical and automotive applications also offer growth potential. Aluminium flat-rolled products can support heat exchangers, electrical components, vehicle lightweighting, industrial equipment and consumer goods manufacturing.

The project fits India’s broader industrial strategy. Domestic aluminium consumption is expected to rise as manufacturing, infrastructure, mobility and consumer sectors expand. Local downstream capacity can reduce reliance on imported rolled products and improve supply security for Indian converters.

Margin Expansion Depends on Product Mix and Efficiency

Shyam Metalics expects the Sambalpur unit to lift consolidated operating margins by 40-50%. The company attributes this to a higher-value product mix and improved operating efficiencies.

The parent group has total installed metal capacity of 16.78mn t/yr and captive power capacity of 467MW. Captive power is important because aluminium processing remains energy-intensive, even when downstream operations are less power-heavy than primary smelting.

The commercial success of the plant will depend on quality consistency, customer qualification and utilisation. Aluminium foil and precision flat-rolled products require tight process control, surface quality and reliable thickness tolerances.

If Smel can ramp smoothly, the facility could help India capture more value inside its aluminium chain. It would also support domestic buyers seeking local supply in packaging, electrical and automotive markets.

The Metalnomist Commentary

Smel’s Sambalpur plant shows India’s aluminium strategy moving downstream into higher-value rolled and foil products. The key test will be whether the company can convert new capacity into qualified, consistent supply for demanding packaging, electrical and automotive customers.

Global aluminium deficit to widen as EV and renewable demand surges

Global aluminium

Global aluminium deficit is set to widen from 2025 as demand outruns constrained supply. Forecasts show global primary aluminium supply rising to 74.3mn t in 2025, 75.8mn t in 2026 and 76.5mn t in 2027, driven mainly by new smelter projects outside China. However, parallel demand growth from electric vehicles and renewable energy will push consumption to 74.5mn t in 2025, 76.1mn t in 2026 and 76.8mn t in 2027, creating annual deficits. These figures translate into a global aluminium deficit of 166,000t in 2025, 281,000t in 2026 and 291,000t in 2027, underscoring a steadily tightening balance.

EV and regional supply dynamics reshape global aluminium deficit

The global aluminium deficit emerges despite incremental regional capacity growth and relatively stable legacy production. Australian primary aluminium output is expected to remain flat at 1.6mn t/yr across 2025-27, highlighting limited upside from a key exporter. Meanwhile, Chinese production is expected to remain below its formal 45mn t/yr cap, reinforcing structural constraints in the world’s largest market. Additional tonnes will therefore come from newer producers, with Indonesia forecast to lift output to 700,000t in 2025 and then double to 1.4mn t by 2027.

India also plays an important role in narrowing, but not eliminating, the global aluminium deficit. Indian primary production is expected to reach 4.2mn t in 2025 and 4.7mn t in 2027, supported by recent smelter investments and captive power integration. However, growth in EV and renewable segments is highly aluminium-intensive, especially for body sheet, castings and extrusions. As a result, structural demand from auto light-weighting, power transmission, solar frames and battery casings will likely sustain the global aluminium deficit even if some projects underperform. Rising primary prices and strong interest in low-carbon metal will deepen the premium gap between conventional and certified low-carbon material.

Recycling, alumina and bauxite respond to shifting aluminium fundamentals

Recycled metal is set to play a larger role in balancing the global aluminium deficit. Global demand for recycled aluminium is expected to increase from 27mn t in 2025 to 29mn t in 2027, reflecting OEM and policy pressure to cut embedded emissions. Total recycled output is forecast to reach 40mn t in 2025 and 44mn t in 2027, driven by higher utilisation of scrap in China, the US and Europe. This shift will partly cushion primary tightness, but scrap quality, collection systems and sorting capacity will limit how far recycling alone can offset the global aluminium deficit.

Midstream markets show a different pattern, with alumina entering a cyclical surplus even as primary metal tightens. Global alumina output is expected to increase to 148mn t in 2025 and 164mn t by 2027, while demand rises more slowly to 145mn t in 2025 and 151mn t in 2027. This surplus suggests downward pressure on alumina prices as global production recovers. Australian alumina output is forecast to rise from under 17.4mn t in 2024–25 to over 18.5mn t in 2026–27, supported by higher production at the Worsley refinery. In turn, global bauxite supply is projected to reach 422mn t in 2025 and 443mn t in 2027, against demand of 373mn t and 414mn t, highlighting a modest buffer at the ore stage even as the global aluminium deficit tightens the finished metal market.

The Metalnomist Commentary

The projected global aluminium deficit through 2027 underscores how quickly EV and renewable investment can tighten a previously balanced market. For producers, stable alumina and ample bauxite create a favourable cost backdrop, but power prices and carbon policies will still define margins. For buyers, competition for low-carbon and recycled units will intensify, making long-term contracts, scrap strategy and regional diversification critical to securing supply.

SMEL Wagon Production Plan Marks Downstream Shift for Indian Long Steel

SMEL

SMEL wagon production will begin in September as Shyam Metalics and Energy prepares to commission a greenfield railway wagon manufacturing plant at Kharagpur, West Bengal. The move marks the Indian integrated steelmaker’s first entry into rolling stock and a rare downstream step by an Indian long steel producer.

SMEL wagon production is strategically important because it connects steelmaking more directly with railway infrastructure, logistics equipment and government-backed transport demand. The project gives the company a route to capture more value beyond commodity steel products.

SMEL wagon production will be developed through Ramsarup Industries, a step-down subsidiary in which Shyam Metalics holds 60% and Super Smelters owns 40%. The plant will initially produce 2,400 wagons per year under phase one, with a second phase planned to add the same capacity.

The facility will manufacture flat, open, box, hopper-covered, tank and specialised wagons. Capital expenditure is budgeted at 2bn rupees, with Rs220mn spent by March 2026.

Railway Wagons Deepen SMEL’s Steel Value Chain

The wagon project gives SMEL a higher-value outlet for steel products at a time when Indian infrastructure and freight transport demand remain important growth channels. Railway wagons require steel, fabrication capability, engineering control and customer qualification, making the business more complex than ordinary long steel sales.

The move also gives SMEL exposure to transport equipment manufacturing. This can improve margins if the company integrates steel supply, fabrication and finished wagon production effectively.

Ramsarup’s industrial platform is also expanding upstream and downstream. Phase one of its blast furnace, sinter and oxygen units has already been commissioned.

Planned phase two additions include an 85,000 t/yr steel wire-drawing line, a 100,000 t/yr blast furnace, 40MW of captive power and an 800,000 t/yr special bar quality mill.

The special bar quality mill is particularly relevant. SBQ products serve automotive, engineering, machinery, fasteners, rail and industrial components, giving SMEL another path toward higher-specification steel markets.

This strategy suggests that SMEL is not only adding capacity. It is trying to move into more engineered and application-specific products where customer relationships, product quality and downstream integration carry greater value.

Stainless and Aluminium Foil Strengthen Higher-Margin Portfolio

SMEL is also expanding in stainless steel and aluminium foil, giving the group a broader non-carbon steel platform. These segments provide exposure to higher-value materials used in consumer goods, industrial equipment, packaging and precision applications.

At Sambalpur in Odisha, SMEL plans to increase stainless steel capacity from 0.5mn t/yr to 0.6mn t/yr. The expansion will include a cold-rolling mill, precision cold-rolling mill, hot-rolling annealing and pickling line, and bright annealing line.

All units are targeted for commissioning by March 2029 at a cost of Rs18bn. The investment will help SMEL move further into value-added stainless products rather than relying only on melting or basic output.

Stainless steel delivered the strongest performance among SMEL’s non-carbon segments in the 2026 financial year. Realisations rose by 6.7% to Rs140,443/t, while volumes increased by 11.5% to 94,102t.

Aluminium foil achieved the highest per-tonne realisation in SMEL’s portfolio. Realisations rose by 10.4% to Rs379,805/t, while volumes were broadly flat at 21,620t because of capacity constraints ahead of expansion.

Speciality alloys were weaker. Full-year realisations slipped by 2.2% to Rs93,837/t despite volumes rising by 11.9% to 223,494t, reflecting softer ferro-chrome, ferro-manganese and silico-manganese markets through much of the year.

The overall direction is clear. SMEL is building a more diversified materials platform across railway wagons, stainless steel, aluminium foil, specialty alloys, wire drawing and SBQ products.

The Metalnomist Commentary

SMEL’s wagon project shows how Indian steelmakers are moving downstream to protect margins and capture infrastructure-linked demand. The real opportunity lies in combining steel production with engineered products, stainless processing and high-realisation aluminium foil.

SMEL Wagon Production Plan Marks Downstream Shift for Indian Long Steel

SMEL

SMEL wagon production will begin in September as Shyam Metalics and Energy prepares to commission a greenfield railway wagon manufacturing plant at Kharagpur, West Bengal. The move marks the Indian integrated steelmaker’s first entry into rolling stock and a rare downstream step by an Indian long steel producer.

SMEL wagon production is strategically important because it connects steelmaking more directly with railway infrastructure, logistics equipment and government-backed transport demand. The project gives the company a route to capture more value beyond commodity steel products.

SMEL wagon production will be developed through Ramsarup Industries, a step-down subsidiary in which Shyam Metalics holds 60% and Super Smelters owns 40%. The plant will initially produce 2,400 wagons per year under phase one, with a second phase planned to add the same capacity.

The facility will manufacture flat, open, box, hopper-covered, tank and specialised wagons. Capital expenditure is budgeted at 2bn rupees, with Rs220mn spent by March 2026.

Railway Wagons Deepen SMEL’s Steel Value Chain

The wagon project gives SMEL a higher-value outlet for steel products at a time when Indian infrastructure and freight transport demand remain important growth channels. Railway wagons require steel, fabrication capability, engineering control and customer qualification, making the business more complex than ordinary long steel sales.

The move also gives SMEL exposure to transport equipment manufacturing. This can improve margins if the company integrates steel supply, fabrication and finished wagon production effectively.

Ramsarup’s industrial platform is also expanding upstream and downstream. Phase one of its blast furnace, sinter and oxygen units has already been commissioned.

Planned phase two additions include an 85,000 t/yr steel wire-drawing line, a 100,000 t/yr blast furnace, 40MW of captive power and an 800,000 t/yr special bar quality mill.

The special bar quality mill is particularly relevant. SBQ products serve automotive, engineering, machinery, fasteners, rail and industrial components, giving SMEL another path toward higher-specification steel markets.

This strategy suggests that SMEL is not only adding capacity. It is trying to move into more engineered and application-specific products where customer relationships, product quality and downstream integration carry greater value.

Stainless and Aluminium Foil Strengthen Higher-Margin Portfolio

SMEL is also expanding in stainless steel and aluminium foil, giving the group a broader non-carbon steel platform. These segments provide exposure to higher-value materials used in consumer goods, industrial equipment, packaging and precision applications.

At Sambalpur in Odisha, SMEL plans to increase stainless steel capacity from 0.5mn t/yr to 0.6mn t/yr. The expansion will include a cold-rolling mill, precision cold-rolling mill, hot-rolling annealing and pickling line, and bright annealing line.

All units are targeted for commissioning by March 2029 at a cost of Rs18bn. The investment will help SMEL move further into value-added stainless products rather than relying only on melting or basic output.

Stainless steel delivered the strongest performance among SMEL’s non-carbon segments in the 2026 financial year. Realisations rose by 6.7% to Rs140,443/t, while volumes increased by 11.5% to 94,102t.

Aluminium foil achieved the highest per-tonne realisation in SMEL’s portfolio. Realisations rose by 10.4% to Rs379,805/t, while volumes were broadly flat at 21,620t because of capacity constraints ahead of expansion.

Speciality alloys were weaker. Full-year realisations slipped by 2.2% to Rs93,837/t despite volumes rising by 11.9% to 223,494t, reflecting softer ferro-chrome, ferro-manganese and silico-manganese markets through much of the year.

The overall direction is clear. SMEL is building a more diversified materials platform across railway wagons, stainless steel, aluminium foil, specialty alloys, wire drawing and SBQ products.

The Metalnomist Commentary

SMEL’s wagon project shows how Indian steelmakers are moving downstream to protect margins and capture infrastructure-linked demand. The real opportunity lies in combining steel production with engineered products, stainless processing and high-realisation aluminium foil.

India’s aluminium scrap demand shifts pressure to Europe and the Middle East

Aluminium Scrap

India’s aluminium scrap demand faces new constraints from US tariffs. India’s aluminium scrap demand now pivots toward Europe and the Middle East. India’s aluminium scrap demand will stay import-reliant despite recycling goals.

Trade tensions squeeze US flows; buyers pivot to new lanes

India remains a top global buyer of aluminium scrap. Imports reached 1.74mn t in 2024 after a 2023 peak of 1.83mn t. US tariffs now disrupt this flow. Washington lifted India’s import tariff to 50pc, doubling the previous rate. As a result, US shipments to India are sliding. First-half 2025 exports totaled 182,000t, tracking 364,000t for the year. That pace marks an 11pc drop versus 2024.

China now rivals India as a leading importer. Both could end near 1.72mn t in 2025 at current run-rates. However, China’s vast secondary capacity exceeds 11mn t/yr. India’s capacity is only ~2mn t/yr. Therefore, imports cover about 90pc of India’s scrap needs. With US supply tightening, India will lean harder on Europe and the Middle East.

Europe, UK and Gulf suppliers face tighter balances

Europe already ships sizable volumes to India. The EU sent 291,000t in 2024, while the UK shipped 162,000t. Middle East flows reached 361,000t, led by the UAE and Saudi Arabia. Consequently, stronger Indian bids may lift delivered prices and drain local availability. European secondary smelters could face higher feed costs and sporadic gaps. Calls to restrict EU scrap exports will likely intensify into 2026.

Policy plans will not change the near-term math. India’s “Vision 2047” targets 2mn t/yr domestic scrap collection by 2030. Authorities aim for 7mn t/yr by 2047 through closed-loop systems. They also plan to raise the recycling rate to 56pc from ~30pc. Meanwhile, primary aluminium ambitions rise toward 37mn t/yr from 4.2mn t/yr. Yet these goals need time, capital and logistics. Until then, import dependence will persist.

Market participants should prepare for tighter arbitrage. European yards may see faster turnarounds and firmer bids. Gulf exporters could prioritize long-term contracts with Indian consumers. Freight, quality premia, and contamination rules will matter more. Price risk will rise if US-India talks stall and tariffs remain.

The Metalnomist Commentary

Watch three levers: US-India negotiations, EU debate on scrap export rules, and India’s collection build-out pace. If Europe curbs exports, India will compete harder in the Gulf and Africa. Near-term, feed scarcity supports scrap premia and squeezes secondary margins outside India.

Vedanta Metals Production Hits Record in FY2025-26 on Efficiency Gains

Vedanta Metals

Vedanta metals production reached a record level in the April 2025-March 2026 fiscal year as efficiency improvements, mine restarts and capacity additions lifted output across key businesses. The Indian mining group reported stronger production in alumina, aluminium, zinc, lead, chrome ore, ferro-chrome and copper cathode.

The strongest increase came from the Lanjigarh alumina refinery, where output rose by 48% on the year to 2.91mn t after the second furnace restarted in the first quarter. This strengthened Vedanta’s upstream aluminium raw material base and improved integration across its aluminium value chain.

Vedanta metals production growth also reflected better utilisation of existing assets. Aluminium output rose by 1% to 2.45mn t, compared with 2.42mn t a year earlier, showing stable primary metal production despite a more challenging cost and energy environment.

Alumina and Base Metals Strengthened Vedanta’s Integrated Platform

The Lanjigarh refinery result was strategically important because alumina availability directly affects aluminium smelter economics. Higher alumina output can reduce exposure to external feedstock volatility and support more stable aluminium production planning.

Zinc and lead production also improved during the year. Combined output reached 1.11mn t, up 2%, supported by better mined metal grades and higher production levels.

This growth reinforced Vedanta’s position across India’s industrial metals chain. Zinc and lead remain important for galvanising, batteries, infrastructure, alloys and manufacturing, while aluminium continues to support transport, power, packaging and construction demand.

Chrome, Ferro-Chrome and Copper Output Added Downstream Depth

Vedanta metals production also benefited from a sharp recovery at Facor, the group’s ferro-alloys subsidiary. Chrome ore production rose by 49% to 371,000t after the restart of the Kalarangiatta mines and expanded environmental clearance at the Ostapal mine.

Ferro-chrome output increased by 21% to 101,000t. This matters because ferro-chrome is a critical input for stainless steel production, linking Vedanta’s chrome ore base to India’s alloy and steelmaking supply chain.

Copper cathode production at the Silvassa smelter rose by 15% to 170,000t. Vedanta attributed the increase to debottlenecking, operational efficiency and more diversified raw material sourcing, all of which improve supply resilience in a tight copper market.

The Metalnomist Commentary

Vedanta’s record output shows how Indian metals producers are using operational upgrades and mine restarts to increase domestic supply. The bigger strategic point is that India’s industrial growth needs integrated capacity across alumina, aluminium, zinc, ferro-alloys and copper, not only isolated production gains.

India Aluminium Quality Control Rules Tighten for 2025 Rollout

India aluminium

Government Targets Low-Quality Imports with Stricter Compliance Measures

India aluminium quality control measures will become stricter from October 2025, as the government enforces a new Quality Control Order (QCO). The regulation targets several aluminium and alloy products, including welded irrigation tubes, EC-grade rods, and wrought bars under specific Indian Standards (IS 733:1983, IS 5484:1997, IS 16011:2012). This initiative seeks to prevent substandard imports from neighboring countries.

Phased Implementation and Enterprise Exemptions

The India aluminium quality control regulation includes exemptions for small and micro enterprises. Small businesses can continue importing non-compliant aluminium products until January 2026, while micro enterprises have until April 2026. Research and development imports of up to 200kg also remain exempt if not commercially sold. This phased implementation ensures a smoother industry transition without major supply disruptions.

Export-Focused Adjustments and Domestic Safeguards

The latest amendment allows exemptions for select imported aluminium products, while the 2024 amendment previously exempted domestically manufactured aluminium destined for export. Therefore, the policy balances trade facilitation with domestic industry protection. India aluminium quality control frameworks now aim to raise product standards, reduce unfair competition, and align with broader industrial policy goals.

The Metalnomist Commentary

India’s aluminium QCO signals a broader industrial strategy that protects domestic producers while encouraging higher-grade imports. The transition period for SMEs reflects pragmatic governance, though it will require vigilance to prevent circumvention via R&D or micro-business loopholes.

Safran Uni Tritech LEAP Engine Components Deal Strengthens India Aerospace Supply Chain

Uni Tritech

Safran Uni Tritech LEAP engine components partnership will add Indian cast aluminium parts production to Safran’s global propulsion supply chain. The French aerospace manufacturer and Indian firm Uni Tritech signed a memorandum of understanding to manufacture components for LEAP-1A and LEAP-1B engines.

Safran Uni Tritech LEAP engine components production will take place in Dharwad, India. The agreement brings Uni Tritech into Safran’s supply chain at a time when aircraft engine makers are working to increase output and reduce bottlenecks across qualified component production.

Safran Uni Tritech LEAP engine components cooperation is strategically important because LEAP engines power major narrowbody aircraft programmes. LEAP-1A engines are used on Airbus A320neo family aircraft, while LEAP-1B engines power Boeing 737 MAX aircraft.

The deal also shows how India is moving deeper into aerospace manufacturing. The country is no longer only a market for aircraft and engines. It is increasingly becoming part of the qualified supplier base for global aerospace programmes.

Cast Aluminium Parts Add Capacity to LEAP Supply Chain

The agreement focuses on cast aluminium parts for LEAP engines. These components are part of a wider engine supply chain that depends on strict quality control, repeatable manufacturing and long-term supplier qualification.

This matters because LEAP engine deliveries have been rising as Airbus and Boeing push narrowbody production higher. Engine manufacturers need more capacity across castings, forgings, machined parts, coatings, assemblies and spare components.

Safran reported stronger engine deliveries in the first quarter, with little to no immediate impact from the US-Israel war against Iran. That performance highlights resilient demand, but it also increases pressure on suppliers to keep pace with production schedules.

Adding Uni Tritech to the supply chain can support diversification. For aerospace companies, geographic diversity is increasingly valuable as they manage logistics risk, capacity constraints and customer delivery commitments.

India’s role is also important from a cost and industrial policy perspective. Local aerospace manufacturing can support skilled employment, supplier development and deeper integration with global aircraft programmes.

India Gains Position in Aerospace Propulsion Manufacturing

The Dharwad production plan strengthens India’s position in aerospace propulsion components. Engine parts require more demanding qualification than many general industrial castings, making this a meaningful step for the local supplier base.

For Uni Tritech, the partnership gives access to a high-value global engine platform. For Safran, it adds another qualified manufacturing route for components needed to support LEAP production and aftermarket demand.

The agreement fits a broader trend in aerospace. Engine makers are widening their supplier networks while increasing investment in regions that can offer scale, technical capability and long-term manufacturing support.

India has been attracting more aerospace supply-chain activity as global manufacturers look for alternatives and additions to traditional production hubs. Partnerships like this can help the country move from assembly and lower-tier fabrication into more specialised component manufacturing.

The strategic value will depend on execution. Uni Tritech must meet Safran’s quality, delivery and process requirements consistently as LEAP engine demand continues to rise.

If successful, the partnership could become a model for further Indian participation in propulsion supply chains. That would support India’s ambition to become a larger supplier to global aerospace and defence manufacturers.

The Metalnomist Commentary

Safran’s agreement with Uni Tritech is small in headline value but important in supply-chain direction. As LEAP production rises, qualified component capacity in India could become a stronger part of the global aerospace manufacturing network.

India Renewable Curtailment Exposes Grid Bottleneck Behind Clean Power Growth

Ember

India renewable curtailment reached around 300GWh in January-March because of transmission constraints, showing that the country’s clean power buildout is now running ahead of grid readiness. The lost generation accounted for nearly two-thirds of India’s total renewable curtailment in the first quarter.

India renewable curtailment was concentrated in renewable-heavy northern and western grid pooling stations, especially Rajasthan and Gujarat. These regions have added large solar and wind capacity, but transmission expansion has not kept pace.

India renewable curtailment is strategically important because wasted clean power weakens project economics, increases peak power costs and delays the energy transition. It also highlights rising demand for grid materials, including copper, aluminium conductors, transformers, electrical steel and battery storage systems.

The curtailed volume represented around 1.5-2% of total renewable generation from interstate transmission system-connected plants in northern and western India. On 30 March alone, India lost 34GWh of renewable output because of insufficient transmission margins.

Transmission Delays Threaten Renewable Project Economics

India has achieved only around 80% of its annual transmission buildout targets over the past five years. That gap is now becoming visible in curtailment, grid connection delays and weaker returns for renewable developers.

One in four interstate transmission schemes scheduled for the 2026-27 fiscal year faces delays of at least one year. Around 20GW of renewable capacity is expected to face grid connectivity delays exceeding four months.

These delays carry direct financial consequences. A six to twelve-month delay in solar projects can reduce internal rates of return by 100-200 basis points because of lost early cash flows and higher financing costs.

The problem also affects India’s fuel import exposure. Curtailed renewable generation could have displaced costly gas-fired power during peak demand periods, reducing reliance on expensive LNG at a time when spot gas prices were elevated by the US-Iran war.

For metals markets, the message is clear. India’s renewable buildout now needs faster transmission investment, which means more demand for aluminium conductor, copper cable, transformers, substations, steel structures and grid equipment.

BESS Deployment Offers Near-Term Relief

Battery energy storage systems could provide a near-term solution at renewable pooling stations. Ember estimates that around 3-4GW of two-hour storage could absorb most curtailed renewable generation.

The economics are becoming more attractive. Stored solar power delivered at 7-8 rupees/kWh would remain below the Rs9-10/kWh many Indian states pay for peak-demand electricity.

This makes BESS deployment more than a technical fix. It is a cost-control tool, a grid-stability tool and a way to protect renewable project returns.

Battery storage demand also has materials implications. BESS deployment supports demand for lithium, phosphate, graphite, copper, aluminium, power electronics and thermal management systems, with lithium iron phosphate likely to remain important for stationary storage.

India’s southern region recorded no transmission-related renewable losses because renewable additions and transmission readiness were better aligned. That contrast shows that curtailment is not inevitable; it is a planning and execution problem.

India’s clean power transition will therefore depend on synchronising generation, transmission and storage investment. Solar and wind additions alone will not deliver energy security if power cannot move from renewable zones to demand centres.

The Metalnomist Commentary

India’s renewable curtailment shows that the energy transition is becoming a grid materials story. The next bottleneck is not only solar panels or wind turbines, but transmission capacity, storage deployment and the metals needed to move clean electricity.

Vedanta Resources Reports Increased Metal Output Driven by Efficiency and Expansion

Vedanta Resources

Vedanta Resources, a prominent Indian mining firm, has announced increased production across several of its metal operations for the April-December 2024 period. The company attributes these gains to improved operational efficiencies and recent capacity additions.

Production Highlights

Vedanta's Lanjigarh refinery saw a 16% year-on-year surge in alumina production, reaching 1.54 million tonnes in April-December 2024, compared to 1.32 million tonnes during the same period in 2023.  Looking at the October-December quarter specifically, alumina output rose by 7% to 505,000 tonnes, up from 470,000 tonnes in the corresponding period the previous year. Market sources indicate that this growth is primarily attributable to enhanced operational efficiency.

Aluminium production also experienced a modest 3% year-on-year increase, reaching 1.81 million tonnes in April-December 2024, up from 1.77 million tonnes in the same period of 2023.  In the October-December 2024 quarter, aluminium output reached 614,000 tonnes, compared to 599,000 tonnes in the same period the previous year.

Combined refined zinc and lead production totaled 783,000 tonnes in April-December 2024, reflecting a 3% increase from the same period in 2023. This improvement is attributed to higher mined metal grades and increased mill capacity. However, production remained stable at 259,000 tonnes in the October-December 2024 quarter compared to the same period in 2023.

Ferro Alloys, a Vedanta subsidiary, reported a 15% year-on-year increase in chrome ore production, reaching 185,000 tonnes in April-December 2024, compared to 160,000 tonnes in the same period of 2023. Ferro-chrome production witnessed a more substantial 35% rise to 72,000 tonnes from 53,000 tonnes, following the commissioning of a new furnace, despite a shutdown in the first quarter of fiscal year 2024, which began in April.

Conversely, copper cathode production at the Silvassa smelter experienced a 4% year-on-year decline, falling to 105,000 tonnes in April-December 2024, down from the same period the previous year.

Adani Nuclear Power Capacity Plan Targets 10GW by 2035

Adani

Adani nuclear power capacity could reach 10GW by 2035 as the Indian conglomerate expands into atomic energy alongside thermal, renewable, hydroelectric and gas-based generation. The plan would make Adani one of the most ambitious private entrants into India’s nuclear power sector.

Adani nuclear power capacity development comes as India seeks to widen private participation in nuclear generation. The country needs significantly more reliable baseload power to support industrialisation, electrification and rising digital infrastructure demand.

Adani nuclear power capacity will be developed through Adani Atomic Energy, a wholly owned subsidiary incorporated by Adani Power in February. The business is authorised to generate, transmit and distribute electricity from nuclear and atomic energy.

The group has not disclosed potential sites, reactor configurations or grid integration plans. However, the 10GW target would represent around one-tenth of India’s planned 100GW nuclear fleet by 2047.

Nuclear Adds Baseload Power to Adani’s Integrated Energy Strategy

Adani plans to invest more than Rs2 trillion over the next five years to expand its overall power generation portfolio to 45GW. The programme covers thermal power, renewables, hydroelectricity, pumped storage and supporting transmission infrastructure.

Nuclear adds a different capability to that portfolio. It can provide large-scale, low-carbon baseload electricity while renewable generation expands.

India currently has around 8.8GW of installed nuclear capacity, with nuclear supplying about 3% of national electricity generation in the 2024-25 financial year. Reaching 100GW by 2047 would therefore require a major acceleration in construction.

Private-sector participation could help provide capital, engineering capacity and project execution. However, nuclear projects require long development periods, strict regulation, specialised supply chains and large upfront investment.

For Adani, nuclear could complement its existing thermal and renewable assets. A diversified generation mix gives the group more flexibility as India’s power demand rises.

The company also remains heavily invested in coal generation. Adani Power operates 18.33GW and has 23.72GW of locked-in capacity, giving it a target of 42.05GW by the 2031-32 financial year.

Data Centres and Grid Growth Strengthen Power Demand Outlook

Adani’s nuclear target also fits rising electricity demand from digital infrastructure. The group’s data centre business aims to reach 3GW of capacity by 2030, supported by growth in artificial intelligence and cloud computing.

Data centres require continuous, high-quality power. This increases the value of generation sources that can provide round-the-clock electricity alongside renewable power and storage.

Adani is also expanding hydroelectric and pumped-storage capacity. Through its partnership with Bhutan’s Druk Green Power, the group plans to jointly develop up to 5GW of hydropower and pumped storage.

The portfolio increasingly resembles a full energy system rather than a collection of individual generation assets. Thermal power provides dispatchability, renewables lower emissions, storage balances variability and nuclear could add low-carbon baseload.

This strategy also carries metals implications. Nuclear, grids, data centres and transmission infrastructure require large volumes of copper, aluminium, specialty steels, zirconium alloys and other engineered materials.

If Adani executes even part of the 10GW nuclear target, India’s nuclear supply chain will need more qualified equipment, materials, engineering and fuel-cycle capacity.

The Metalnomist Commentary

Adani’s nuclear plan shows that India’s power strategy is moving toward a broader mix rather than a renewables-only model. The industrial opportunity will extend beyond generation into grids, specialty metals, nuclear-grade materials and long-term power infrastructure.

Vedanta’s April-June Earnings Surge on Cost Reduction Initiatives

Indian diversified mining giant Vedanta Resources has reported a significant increase in earnings for the April-June quarter, the first of its financial year, driven by a successful cost reduction program that boosted margins compared to the same period in 2023.

Vedanta announced consolidated earnings before interest, tax, depreciation, and amortization (Ebitda) of ₹10,275 crore ($1.22 billion) for the quarter, marking a 47% year-on-year increase and a 15% rise from the previous quarter. The company's revenue also saw a notable rise, with earnings growing by 6% year-on-year to ₹35,239 crore, a 1% increase from the previous quarter.

The strong financial performance exceeded market expectations, leading to a more than 4% rise in Vedanta's share price as investors reacted positively to the results. Executive Director Arun Misra attributed the impressive earnings to the company’s strategic emphasis on cost control, which resulted in a 20% reduction in costs compared to the first quarter of the 2023-24 financial year.

In addition to cost management, Vedanta also reported increases in production across several key commodities. Alumina production surged by 26% year-on-year to 539,000 tonnes, driven by capacity expansions, while primary aluminium output grew by 3% to 596,000 tonnes. Refined zinc production reached 211,000 tonnes, up 1% from the previous year, and refined lead output increased by 2% to 51,000 tonnes.

However, the company faced challenges in its iron ore segment, with saleable output totaling 1.3 million tonnes, a 27% decrease from the previous quarter. This decline was primarily due to a government-ordered suspension of mining activities in Karnataka’s Chitradurga district in late April, which was later lifted on May 21.

Vedanta's strong earnings and strategic cost management highlight its resilience in a volatile market environment, positioning the company well for the remainder of the financial year.