- Tight physical availability supports domestic prices
- Stronger US dollar and supply outlook weigh on LME
National Aluminium Company Ltd. (NALCO) reduced its aluminium P1020 price by INR 7,600/t, or 2.2%, to INR 343,600/t on 13 October 2026, from INR 351,200/t on 1 October.
The domestic P1020 market remained stable during the week, supported by strong demand and tight supply despite declines in MCX and LME aluminium prices. Tight physical availability continued to support domestic market fundamentals, limiting downward pressure on prices.
In India, domestic aluminium premiums remained stable at $280-290/t, supported by tight primary metal availability.
Meanwhile, the LME three-month aluminium contract declined by $58/t, or 1.9%, to $3,060/t on 12 October from $3,118/t on 5 October. The decline was driven by a stronger US dollar, expectations of additional global supply, particularly from Indonesia, and easing concerns over Middle East supply disruptions. Expectations of US inflation data also weighed on market sentiment.
Meanwhile, LME aluminium stocks declined by 1,750 t, or 0.7%, to 238,625 t on 12 October from 240,375 t on 5 October. Despite the drawdown, inventories remained near historically low levels, providing some underlying support to prices.
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