Upstream weekly recap: Significant price increases for alumina reflect growing market demand; Vedanta launches 37-km rail project to boost coal transport

Aluminium is an essential component of the global economy, and its growing demand underscores its lasting importance. Despite occasional challenges or disruptions, the market for sustainable aluminium will continue to grow, reflecting the unrelenting need for this eco-friendly material.

To begin with, Vedanta Aluminium officially announced that the new 37-km Sardega-Bhalumuda rail project, connecting Odisha and Chhattisgarh, will facilitate smoother and faster transportation of coal from the company's mines once it becomes operational. Apart from this, under the alumina segment, alumina's price also recorded a surge of RMB 7 per tonne on Wednesday (September 18), followed by a growth of RMB 18 per tonne the next and  RMB 13 per tonne on Friday. The increase in prices highlights the growing demand for alumina. Another important event is that Saudi Arabia has reaffirmed its commitment to strengthening its presence in the metals and mining sector to make it a third pillar of the kingdom's economy. Ma'aden, Saudi Arabia's leading mining company, has finalized an agreement to acquire SABIC's 20.62% stake in Aluminium Bahrain (ALBA). This acquisition underscores Ma'aden's commitment to regional expansion and aligns with its ambitious goal of achieving tenfold growth by 2040.