On February 17, 2025, aluminium futures in India experienced an uptick, with prices reaching ₹256.60 per kilogram on the Multi Commodity Exchange (MCX). This rise is attributed to traders establishing new positions in response to heightened demand from consuming industries.
The March delivery contracts saw an increase of 60 paise, or 0.23%, trading at ₹256.60 per kg across 2,050 lots. Analysts attribute this upward trend to fresh positions created by traders, supported by demand from consuming industries.
In the broader market context, National Aluminium Company Limited (NALCO) recently raised its primary aluminium ingot prices by ₹6,700 per tonne, setting the new price at ₹271,600 per tonne as of February 7, 2025. This adjustment reflects the company’s response to global market trends and aims to align domestic prices with international benchmarks.
However, the Indian aluminium industry faces challenges due to proposed tariffs by the United States, its primary export market for the metal. These tariffs are expected to reduce India’s aluminium shipments to the U.S., prompting producers to explore alternative markets, including Europe.
Despite these challenges, the domestic aluminium market remains resilient, with futures prices reflecting robust demand and strategic positioning by traders.
Source: Web Team, C6N
