Aluminium stocks slide as US-Iran deal eases supply fears, ends war-driven rally

Aluminium stocks fell sharply as a potential US-Iran deal eased supply fears related to the Strait of Hormuz blockage, with LME aluminium prices dropping 8% in June so far after rallying for six consecutive months. Vedanta dropped 5%, while National Aluminium Company and Hindalco fell 4.1% and 3.1% respectively, dragging the Nifty Metal Index down 1.6%. Analysts warn the metal index could correct another 5% if the peace deal is signed on June 19, though Q1 earnings for these companies may remain robust on improved margins from the earlier price spike.