New Delhi: Aluminium prices have continued to drop in the futures market due to tepid demand from key consuming industries. On the Multi Commodity Exchange (MCX), aluminium futures for November delivery slid by ₹1.15, or 0.47%, to ₹242.45 per kilogram. This drop reflects the broader market sentiment, where participants are trimming positions amid weakened industrial activity.
Analysts point to sluggish demand in both domestic and international markets, driven by global economic uncertainties and a slowdown in key sectors like construction and automotive. The drop in aluminium prices has been exacerbated by a supply glut, with stockpiles remaining high in major global hubs. Furthermore, concerns over China’s real estate sector and reduced output from its industrial sectors have influenced the global market.
While the aluminium market is facing downward pressure, industry experts suggest that future price movements will heavily depend on global economic recovery and demand from renewable energy sectors, where aluminium is a key material.
This decline is part of a broader trend across the metal sector, as commodity markets face volatility in the wake of fluctuating global economic conditions. Traders remain cautious, keeping an eye on developments in the global economy and potential shifts in industrial demand.
Inputs from Agencies
