- Firm domestic market supports NALCO price increase
- Buyers limit purchases to immediate requirements
NALCO increased its primary aluminium ingot (P1020, 99.7%) prices on 18 July, raising the benchmark to INR 356,300/t ($3,954/t) from INR 352,800/t ($3,915/t) on 11 July, marking an increase of INR 3,500/t ($39/t), or 1%, supported by firm domestic aluminium prices. The prices are quoted on an ex-works basis and exclude GST.
The domestic aluminium market remained firm during the week, supported by stronger MCX trends and declining LME inventories. Although gains on the LME were modest, the continued drawdown in exchange stocks reinforced concerns over global metal availability, keeping overall market sentiment positive.
Demand, however, remained subdued as the ongoing monsoon season continued to weigh on consumption across key end-user industries. Market participants noted that most buyers are procuring material only for immediate requirements, with limited appetite for inventory build-up amid volatile global price movements.
Domestic aluminium futures on the MCX rose by INR 7,702/t (2%) w-o-w to INR 341,880/t from INR 334,178/t in the previous week.
Meanwhile, three-month aluminium prices on the LME edged up by $10/t (0.3%) to $3,160/t from $3,150/t. At the same time, LME aluminium inventories declined by 7,269 t (2%) to 283,881 t, indicating continued tightness in exchange stocks and providing support to global aluminium prices.
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