en.Wedoany.com Reported - As of July 17, 2026, domestic Indian aluminum prices continued to rise week-on-week, supported by strengthening trends on the Multi Commodity Exchange (MCX) and the London Metal Exchange (LME), despite sluggish spot market buying activity during the monsoon season.
According to BigMint's assessment, P1020 aluminum ingot prices in the Delhi NCR region rose by INR 7,100/tonne (2%) week-on-week on July 17, increasing from INR 341,700/tonne on July 10 to INR 348,800/tonne.
In terms of Indian and global exchange performance, MCX domestic aluminum futures prices rose by INR 7,702/tonne (2%) week-on-week, from INR 334,178/tonne last week to INR 341,880/tonne. LME three-month aluminum prices edged up by $10/tonne (0.3%), from $3,150/tonne to $3,160/tonne. Meanwhile, LME aluminum inventories decreased by 7,269 tonnes (2%) to 283,881 tonnes, indicating continued tightness in exchange stocks and providing support for global aluminum prices.
In terms of market dynamics, the domestic aluminum market remained firm this week, supported by the strengthening trend on the MCX and declining LME inventories. Although the LME gains were modest, the continued decline in exchange inventories has heightened concerns about tight global metal supply, keeping overall market sentiment positive. However, demand remained sluggish, as the ongoing monsoon season continued to weigh on consumption in key end-user industries. Market participants noted that most buyers were only purchasing materials for immediate needs, with limited willingness to build inventories amid global price volatility.
In the Asian market, aluminum premiums remained largely stable despite subdued trading activity. Japanese buyers continued to purchase only spot cargoes while awaiting clearer signals on fourth-quarter contract premiums. Inquiry levels across the broader Asian market were limited, with sellers lowering offers in anticipation of additional supply from the Middle East and Indonesia. In India, despite weak demand, domestic aluminum premiums remained around $330-340/tonne, supported by tight primary metal supply.
Downstream aluminum manufacturers urged the Ministry of Mines to reduce the effective import duty of 8.25% on primary aluminum, arguing that the current tariff structure allows domestic producers to price at import parity, significantly raising raw material costs. Industry associations emphasized that profit margins for downstream small and medium enterprises have been compressed by up to 70%, while global aluminum price increases over the past three months have raised input costs by 20-35%. These companies also expressed concerns over the inverted tariff structure, under which several aluminum finished products continue to enter India at low or zero duties under various free trade agreements.
In Western markets, European aluminum premiums remained under pressure due to ample alternative supply from Canada and Indonesia as well as seasonal demand weakness. US premiums were largely stable, as subdued summer demand offset support from declining global inventories and ongoing geopolitical uncertainties.
Looking ahead, domestic aluminum prices are expected to remain firm in the near term, supported by the strengthening trend on the MCX, declining LME inventories, tight supply, and stable regional premiums. However, monsoon-related demand weakness may keep spot purchases largely need-based. Market participants will also closely monitor progress on proposed import tariff rationalization, as any policy changes could impact domestic primary aluminum pricing and improve raw material availability for downstream manufacturers in the coming months.
