Vedanta stock set for growth amid aluminium price surge, de-merger plans

Aluminium has a favourable price trend going into CY2025. Aluminium prices, which averaged $2,381 per tonne in 2QFY25, have now recovered to $2,600 per tonne, driven by high alumina prices on global bauxite supply concerns, improving demand from China and revocation of export rebates on aluminium products from China.

 

Aluminium prices have been driven by record high alumina prices which squeezed smelter margins. This was due to a series of global supply chain disruptions amid better demand as aluminium production in China ramped up.

 

The cost of alumina accounts for over 50 per cent of the cost of aluminium, compared