- Tight physical availability offers limited support to domestic prices
- Domestic aluminium demand remains subdued during festival holidays
Domestic aluminium prices in India declined w-o-w, reflecting weakness in the domestic market amid falling global benchmark prices. The decline indicates downward pressure on prices, in line with the broader weakness in international aluminium markets.
According to BigMint’s assessment, P1020 aluminium ingot prices in Delhi NCR fell by INR 20,000/t (5.8%) w-o-w to INR 325,000/t.
How did Indian and global exchanges perform?
Domestic aluminium futures on the MCX declined w-o-w by INR 12,850/t (3.8%) to INR 325,650/t, reflecting continued weakness in the domestic market.
Meanwhile, three-month aluminium prices on the LME fell by $135/t (4.3%) w-o-w to $3,014/t, indicating a broader downward trend in international aluminium markets.
LME aluminium inventories declined by 500 t (0.2%) w-o-w to 238,375 t. The marginal drawdown kept exchange stocks relatively tight, providing limited underlying support amid the sharp decline in prices.
Market updates
The domestic aluminium market remained under pressure during the week, driven by weak buying activity amid festival holidays and sufficient inventory availability. Declines in MCX and LME aluminium prices further weighed on market sentiment. However, tight physical availability continued to provide some underlying support, limiting further downside.
In India, domestic aluminium premiums remained stable at $280–290/t, supported by tight primary metal availability despite subdued demand.
Outlook
Domestic aluminium demand is expected to pick up after the festival holidays as buying activity resumes. In the near term, prices are likely to remain under pressure amid weak demand and declining global benchmarks, while tight physical availability and stable premiums may provide some support. Market direction will depend on the recovery in post-holiday demand and movements in MCX and LME aluminium prices.
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