en.Wedoany.com Reported - Supply tightness continues to support global aluminum prices, with domestic Indian aluminum prices strengthening significantly in the week ending June 4, 2026, driven by strong trends on the Multi Commodity Exchange (MCX) and sustained firmness on the London Metal Exchange (LME).

According to market assessments, P1020 aluminum ingot prices in the Delhi NCR region rose by 10,000 rupees/ton week-on-week, from 393,000 rupees/ton on May 28, 2026, to 403,000 rupees/ton on June 4, 2026. During the same period, P1020 aluminum ingot prices in areas outside Mumbai rose by 8,000 rupees/ton week-on-week, from 395,000 rupees/ton to 403,000 rupees/ton.

In terms of futures market performance, MCX domestic aluminum futures traded firmly week-on-week, rising by 7,450 rupees/ton (up 1.9%) from 386,340 rupees/ton on May 28, 2026, to 393,790 rupees/ton on June 4, 2026. In comparison, LME three-month aluminum prices rose by $40/ton (up 1.1%) from $3,664/ton on May 28, 2026, to $3,704/ton on June 4, 2026. During the same period, LME aluminum inventories decreased by 2,550 tons to 335,450 tons, compared to the previous value of 338,000 tons.

Tightening global supply conditions, continued declines in exchange inventories, and high Cash-3M premiums, reflecting sustained tightness in spot metal supply, continue to support LME aluminum prices. Meanwhile, ongoing geopolitical uncertainties surrounding Middle East shipping routes and stronger overseas demand, despite volatile trading conditions, continue to support overall aluminum market sentiment.

A major primary producer reported a significant increase in domestic P1020 aluminum premiums to around $360/ton, supported by rising LME aluminum prices and sustained tightness in spot supply. Market participants noted that while buying interest remains cautious at elevated price levels, firm global benchmarks and continued declines in exchange inventories continue to support domestic quotations. Additionally, rising replacement costs remain a key factor influencing premium levels across the market.

National Aluminium Company Limited (NALCO) raised its primary aluminum ingot (P1020, 99.7%) price by 1,500 rupees/ton (up approximately 0.4%) from 411,000 rupees/ton on May 27, 2026, to 412,500 rupees/ton on June 1, 2026. This price adjustment reflects continued firmness in domestic producer pricing against the backdrop of elevated global aluminum market trends.

Meanwhile, Bharat Aluminium Company (BALCO) recorded a week-on-week increase of 0.9%, with average prices rising from 422,900 rupees/ton to 426,833 rupees/ton; while Hindalco prices rose by 2.4% during the same period, from 423,083 rupees/ton to 433,417 rupees/ton.

India's downstream aluminum industry, particularly Micro, Small, and Medium Enterprises (MSMEs), is urging the government to reduce the 8.25% import duty on primary aluminum, amid rising raw material and energy costs due to the ongoing West Asia conflict. Industry bodies state that rising global aluminum prices, supply chain disruptions, and import parity pricing have pushed up domestic input costs, while low-duty imports of finished aluminum products continue to pressure local manufacturers. The industry is also facing disruptions in LPG and natural gas supplies, with some downstream sectors reporting a 40% to 50% decline in production. Stakeholders are calling for tariff relief and targeted support measures to help MSMEs cope with rising cost pressures.

Domestic Indian P1020 aluminum prices are expected to remain firm in the near term, supported by high LME aluminum prices, stronger producer pricing sentiment, and sustained tightness in spot supply. Declining LME inventories, high Cash-3M premiums, and firm MCX trends are likely to continue supporting domestic quotations, while higher replacement costs and ongoing geopolitical uncertainties surrounding key shipping routes, despite cautious buying at elevated price levels, may continue to influence overall market sentiment.

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