- Weakening domestic market prompts NALCO price cut
- Buyers continue to restrict purchases to immediate requirements
NALCO reduced its primary aluminium ingot (P1020, 99.7%) prices on 29 July, lowering the benchmark to INR 354,900/t ($4,055/t) from INR 361,100/t ($4,126/t), marking a decline of INR 6,200/t ($71/t), or 1.7%, in line with softer domestic aluminium market conditions. Prices are quoted on an ex-works basis and exclude GST.
The domestic aluminium market weakened during the week, pressured by a decline in LME aluminium prices and subdued sentiment across the broader non-ferrous metals markets. Market participants noted that softer global cues weighed on domestic pricing, prompting NALCO to revise its benchmark lower.
Demand remained largely stable but cautious during the week, as seasonal factors continued to curb consumption across key end-user industries. Buyers continued to procure material primarily to meet immediate requirements, while avoiding significant inventory build-up amid uncertainty surrounding global economic conditions and price direction.
Meanwhile, three-month aluminium prices on the LME declined by $27/t (0.9%) to $3,143.5/t from $3,170.5/t. At the same time, LME aluminium inventories fell by 8,975 t (3.2%) to 269,300 t from 278,275 t, indicating continued tightening in exchange stocks, although the supportive impact of lower inventories was outweighed by weaker overall market sentiment.
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