- P1020 market remains firm amid supply tightness
- Firm LME prices sustain P1020 market strength
NALCO increased its primary aluminium ingot (P1020, 99.7%) prices on 8 July, raising the benchmark to INR 349,000/t ($3,873/t) from INR 344,000/t ($3,817/t) on 1 July, marking an increase of INR 5,000/t ($56/t), or 1.5%, supported by improved domestic aluminium prices. The prices are quoted on an ex-works basis and exclude GST.
India’s P1020 aluminium market remains supported by persistent physical tightness following the recent rise in LME aluminium prices.
Current domestic premiums are largely aligned with the QMJP benchmark, hovering around $350/t, as lower LME prices have encouraged buyers to place spot orders and replenish inventories.
While the monsoon season is typically associated with softer demand across several end-use sectors, market participants report improved spot buying activity as consumers seek to capitalize on the recent decline in benchmark prices. This has helped maintain market liquidity despite seasonally weaker consumption trends.
On the supply side, physical metal availability continues to remain constrained. Market sources indicate that some participants have oversold volumes despite ongoing tightness, reinforcing concerns over near-term supply adequacy.
Similarly, benchmark three-month aluminium futures on the London Metal Exchange (LME) rose by $74/t, or 2.4% w-o-w, to $3,147/t on 8 July from $3,073/t on 1 July.
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