- Tightening supply conditions strengthened market sentiment
- Premiums stay rangebound amid cautious buying
Domestic aluminium prices in India increased w-o-w as of 7 May 2026, supported by firmer trends on the London Metal Exchange (LME) and the Multi Commodity Exchange of India (MCX).
As per market assessments, P1020 ingot prices in Delhi NCR rose by INR 4,500/t, or 1.2%, w-o-w to INR 375,000/t on 7 May. Similarly, Mumbai prices increased by INR 3,000/t, or 0.8%, w-o-w to INR 374,000/t during the same period.
How did Indian and global exchanges perform?
Domestic aluminium futures on the Multi Commodity Exchange of India increased w-o-w by INR 4,080/t, or 1.1%, to INR 369,080/t, indicating improved momentum in the domestic market despite intra-week volatility.
In the global market, three-month aluminium prices on the LME increased by $41/t, or 1.2%, w-o-w to $3,523/t on 7 May. Meanwhile, stocks at LME-registered warehouses declined by 4,325 t, or 1.2%, to 362,725 t during the same period, reflecting continued drawdown in inventories and tight physical availability in the global aluminium market.
Market sentiment remained supported by continued inventory drawdowns at LME-registered warehouses, tight physical availability, and concerns over supply disruptions amid ongoing geopolitical tensions and logistics uncertainties in key regions. However, intermittent profit-booking and mixed macroeconomic signals capped further upside in aluminium prices.
Additionally, stronger LME performance relative to SHFE during the Labour Day holiday period and expectations of steady downstream demand continued to lend support to the broader market.
Market updates
A major primary producer indicated that domestic P1020 aluminium premiums continued to hover around $280-290/t, supported by the rebound in global benchmark prices and tightening near-term supply conditions. However, buying activity has become increasingly cautious at elevated price levels, even as firmer LME prices and declining inventories continue to lend support to offers. While overall availability remains stable, rising replacement costs are gradually shaping market sentiment and pricing dynamics.
Across India, producer prices exhibited a largely stable to marginally softer trend during the week, with earlier gains continuously losing momentum. NALCO kept its primary aluminium ingot (P1020, 99.7%) prices unchanged during the week at INR 390,000/t, following its last revision on 1 May, reflecting a stable pricing trend in the domestic market.
Meanwhile, BALCO reported a minor 0.9% w-o-w decline, with average prices easing to INR 413,100/t from INR 417,000/t, while Hindalco saw a minor 1.7% decrease to INR 407,167/t from INR 414,250/t.
Outlook
Domestic aluminium prices are expected to remain firm with a positive bias, tracking trends on the LME and Multi Commodity Exchange of India. While tight global inventories, elevated premiums, and supply-side concerns may continue to support prices, cautious buying at higher levels and intermittent profit-booking are likely to limit sharper gains. Overall, sentiment is expected to remain volatile with prices closely following global cues and inventory movements.
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