India: Aluminium prices fall INR 12,000/t w-o-w post sustained increase

• MCX aluminium futures drop 4% over the week
  
  
• NALCO cuts primary aluminium ingot prices sharply
  
  

Domestic aluminium prices in India declined significantly w-o-w as of 12 May'26, pressured by weaker trends on both the Multi Commodity Exchange (MCX) and the London Metal Exchange (LME).

According to market assessments, P1020 ingot prices in Delhi NCR declined by INR 12,000/t (3%) w-o-w to INR 382,000/t on 12 May'26, from INR 394,000/t on 5 May'26. Similarly, Ex-Mumbai P1020 aluminium ingot prices fell by INR 11,000/t w-o-w to INR 383,000/t from INR 394,000/t during the same period.

How did Indian and global exchanges perform?

Domestic aluminium futures on the MCX weakened w-o-w, declining by INR 16,300/t, or 4%, to INR 373,700/t on 12 May'26 from INR 390,000/t on 5 May'26.

Similarly, three-month aluminium prices on the LME fell by $160/t, or 4%, to $3,510/t on 12 May'26 from $3,670/t on 5 May'26. Meanwhile, LME aluminium stocks declined by 11,220 t, or 3%, to 322,000 t from 333,220 t during the same period.

Three-month aluminium prices on the LME declined w-o-w as traders booked profits after prices hit four-year highs, while stronger-than-expected US economic data boosted the US dollar and reduced expectations of near-term Federal Reserve rate cuts, weighing on industrial metals. Concerns over global demand also pressured prices, although lower LME inventories helped limit further downside.

Market updates

A major primary producer reported that domestic P1020 aluminium premiums eased to around $290-310/t, tracking declines in LME aluminium and MCX prices. Market participants indicated that lower replacement costs and cautious buying activity weighed on premium levels, while continued tightness in exchange inventories provided only limited support to domestic offers.

NALCO reduced its primary aluminium ingot (P1020, 99.7%) prices by INR 14,000/t ($154/t) on 10 Jun'26, reversing the gains recorded in the previous revision amid weaker global aluminium market trends.

Meanwhile, BALCO recorded a 3% w-o-w decline, with average prices falling to INR 415,750/t from INR 426,792/t, while Hindalco prices declined by 5% to INR 413,300/t from INR 433,417/t during the same period.

Producers seek higher Q3 QMJP premiums

The Q2 2026 QMJP benchmark held steady at $350-355/t, while producers proposed Q3 (Jul-Sep) premiums of $460-470/t, signalling expectations of higher contract settlements for the upcoming quarter.

Outlook

Domestic aluminium prices are expected to correct in the near term, tracking softer MCX and LME trends amid cautious buying activity. However, steady end-user demand and producer pricing strategies are expected to provide underlying support, limiting further downside.