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Informist, Thursday, Jan. 29, 2026

 

--MCX Feb aluminium contract hits record high of INR 361.25 per kg

 

MUMBAI – Futures contracts of aluminium on the Multi Commodity Exchange of India surged to fresh all-time highs Thursday, tracking a sharp rise in contracts on the London Metal Exchange because of a weak dollar. Market sentiment was also lifted by concerns about supply tightness after production of the metal in China reached the government-mandated capacity limit of 45 million tonnes. Aluminium prices on the domestic bourse rose to a record high of INR 361.25 per kg earlier Thursday.

 

"Sentiment was further buoyed by a sharp drop in the US dollar, after comments from Donald Trump reinforced expectations of a prolonged period of currency weakness, supporting commodity prices," Kotak Securities said in a report.

 

The US dollar fell to its lowest level in four years earlier this week after US President Donald Trump said Tuesday that the value of the dollar was "great" when asked whether he thought it had declined too much. Traders took Trump's signalling that he was unconcerned about the weakness as a cue to sell the greenback aggressively. Though the index rebounded on Thursday after US Treasury Secretary Scott Bessent said the US has a strong dollar policy and that means setting the right fundamentals, it remained in the lower range.

 

The surge in aluminium prices reflects tightening global supply conditions, as China's aluminium output hit a record 45.02 million tonnes in 2025. "With limited scope for further expansion in China, concerns are growing over whether producers elsewhere can ramp up supply quickly enough to meet demand from the energy transition. Supply risks were amplified by disruptions at key smelters in Iceland, Mozambique and Australia," Kotak said.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Ashutosh Pati

Edited by Saji George Titus

 

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