India: Aluminium prices ease slightly after rally, global cues soften while tight inventories lend support

Aluminium futures witnessed a slight correction as of 23 April 2026, with both domestic and global markets easing after the previous week's strong uptrend. On the domestic front, MCX aluminium futures edged down by INR 500/t, or 0.1% w-o-w, to INR 373,500/t, indicating mild profit booking and a pause in bullish momentum.

In the global market, 3-month aluminium prices on the LME declined by $25/t, or 0.7%, to $3,609/t. Meanwhile, stocks at LME-registered warehouses dropped sharply by 10,625 t, or 2.7%, to 381,050 t, suggesting continued supply-side tightness despite the price correction.

A major primary producer indicated that domestic P1020 aluminium premiums held steady in the range of $280-300/t, though the market tone has turned slightly cautious following the recent price correction. Buying activity has moderated at higher levels, with participants adopting a wait-and-watch approach. However, relatively firm LME prices and declining exchange inventories continue to provide underlying support to domestic offers. While material availability remains stable, elevated replacement costs are still shaping pricing decisions and preventing any sharp downside in premiums.

Reflecting the recent market correction, NALCO's primary aluminium ingot (P1020, 99.7%) prices remained stable at INR 383,600/t as of 23 April, indicating a pause in price movement after the earlier uptrend.

Meanwhile, BALCO's average price levels declined by INR 14,649/t, or around 3.6%, easing to INR 396,458/t from INR 411,107/t in the previous assessment. Similarly, Hindalco's average prices also dropped by INR 12,917/t, or approximately 3.1%, falling to INR 398,750/t from INR 411,667/t, reflecting a correction in producer pricing in line with the softer trend in domestic and global aluminium markets.

Outlook

Aluminium prices are expected to remain range-bound in the near term, with a slight downward bias following the recent correction. While softer demand and cautious buying may limit upside, continued tightness in LME inventories and firm global cost structures are likely to provide downside support. Domestic premiums are expected to hold steady, with market participants closely tracking global cues and geopolitical developments for further direction.