- India’s major producers hike prices on strong global cues
- Festive season demand leads to healthy buying interest
Domestic primary aluminium P1020 prices increased w-o-w in northern and western India. This follows price hikes from primary players in line with the rise in London Metal Exchange (LME) aluminium tags amid rising supply concerns in the global market.
As per BigMint’s assessment, India’s domestic primary aluminium P1020 ingot (99.7%) prices climbed up by INR 8,000/t w-o-w to INR 281,000/t from the previous week’s INR 273,000/t ex-Delhi NCR.
A source informed BigMint, “Primary aluminium prices are being affected by the sharp rise in LME tags. Additionally, fluctuations in exchange rates are also influencing aluminium prices.”
The recent rise in primary aluminium ingot prices in the domestic market aligns with the hikes announced by key producers Hindalco, BALCO, and NALCO.
On a w-o-w basis, Hindalco increased its P1020 ingot price by INR 4,500/t to INR 278,750/t, while BALCO raised its rate by INR 4,750/t to INR 280,750/t. NALCO also followed with an INR 4,900/t hike, taking its P1020 price to INR 282,800/t, effective 9 October 2025.
A trader stated, “Primary producers such as Hindalco and Balco have raised their premiums on virgin aluminium, backed by robust domestic demand and a tight supply of high-purity metal.”
As per sources, domestic premiums for P1020 ingot in Delhi were at around $80-90/t above the LME levels.
On the other hand, aluminium futures on the MCX rose by INR 2,750/t to INR 268,700/t for November delivery, gaining 1.03% in Thursday’s session. The uptrend was driven by renewed buying from speculators, supported by firm demand from consuming industries and a positive trend in the spot market.
LME tags gain w-o-w, inventories decline
LME aluminium prices surged to a 3.5-year high last seen in June 2022, driven by tightening supply and falling inventories. Adding pressure, Guinea revoked all mining licences from Guinea Alumina, raising concerns over bauxite supply disruptions to major producers such as Emirates Global Aluminium, further fuelling market uncertainty. Additionally, growing expectations of further U.S. Federal Reserve rate cuts have continued to support price increases.
At the time of reporting, LME aluminium prices were at $2,788/t, reflecting a w-o-w gain of $83/t or approximately 3% from last week’s $2,705/t. Overall, prices have shown a steady uptrend over the past 2-3 months, reflecting increasing market tightness and investor caution.
Meanwhile, aluminium inventories at registered warehouses posted a decline of 2,025 t to 506,400 t from 508,425 t in the previous week.
Additionally, the global aluminium market faces a looming supply crunch as China nears its 45-mnt annual output cap. Exports fell 9% while imports rose 11% in January-July 2025. Sanctions on Russian aluminium and falling LME stocks also added pressure. Outside China, high energy costs and limited new capacity threaten supply amid rising demand from EVs and green energy sectors.
Other updates
Vedanta plans to invest INR 13,226 crore to boost its aluminium production capacity from the current 2.4 MTPA to 3.1 MTPA by FY’28. Additionally, the company is anchoring aluminium at the core of its growth strategy, positioning the metal as a key driver of future expansion.
Outlook
Looking ahead, virgin aluminium prices are expected to remain firm, supported by rising global aluminium tags amid declining inventories and ongoing supply concerns. Additionally, domestic demand is likely to stay moderate to strong with the onset of the upcoming festive season.
Leave a Reply