SteelMint

India: Aluminium prices decline w-o-w despite firmer MCX, LME trends

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by

Aditi Sen
in ,
  • Lower domestic prices persist amid subdued market demand
  • MCX recovery offers limited support to domestic prices

Domestic aluminium prices in India declined marginally w-o-w, despite a rise in LME aluminium prices. The domestic physical market remained under pressure, while the recovery in MCX aluminium prices provided some support.

According to BigMint’s assessment, P1020 aluminium ingot prices in Delhi NCR decreased by INR 3,000/t (0.8%) w-o-w to INR 351,000/t.

How did Indian and global exchanges perform?

Domestic aluminium futures on the MCX increased by INR 3,850/t (1%) w-o-w to INR 348,100/t, providing some support to domestic aluminium prices.

Meanwhile, three-month aluminium prices on the LME increased by $71/t (2%) w-o-w to $3,312/t. LME aluminium inventories declined by 500 t (0.2%) w-o-w to 246,225 t, offering additional support to prices.

Market updates

The domestic aluminium market remained subdued during the week, with prices declining despite a rise in LME aluminium prices, as stronger MCX prices provided limited support to the physical market. A marginal decline in LME inventories offered some underlying support, while lower exchange stocks continued to signal relatively tight metal availability.

Meanwhile, demand remained subdued amid the ongoing monsoon season, with buyers largely restricting purchases to immediate requirements and showing limited interest in inventory building. Domestic aluminium premiums remained stable at around $290-300/t, indicating steady physical market conditions.

Outlook

Domestic aluminium prices are expected to remain range-bound in the near term, with subdued demand limiting upside. However, firm LME prices, low exchange inventories and stable premiums could provide some support to the market.

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