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Informist, Monday, Apr. 27, 2026

 

--MCX aluminium May contract hits new high of INR 379.65 per kg 

 

NEW DELHI – Aluminium futures contracts hit a record high on the Multi Commodity Exchange of India Monday, tracking gains on the London Metal Exchange due to a weak dollar. Persistent supply concern amid disruptions in West Asia and tight inventory are also supporting prices, according to analysts. 

 

At 1357 IST, the most-active May futures contract on MCX was nearly 1.2% higher at INR 378.5 per kilogram. Earlier in the day, the contract hit a record high of INR 379.65 per kg. 

 

The continued disruptions at the Strait of Hormuz, along with damage to key refineries in the UAE and Bahrain, have intensified fears of prolonged supply shocks. Since January, aluminium prices have risen over 27% and 16?ter US and Israel attacked Iran on Feb. 28. 

 

 

Although global aluminium production has risen from last year, it is estimated inadequate to meet the growing demands from transportation, construction, and power sectors. "JP Morgan projects a 1.9 million tonne deficit in 2026, with prices potentially reaching $4,000 per tonne amid tightening fundamentals," Kedia Advisory said. 

 

Global production of primary aluminium was up over 10% on month at 6.30 million tonnes in March, according to data from the International Aluminium Institute. However, in countries under the Gulf Cooperation Council, production fell over 5% on year to 495,000 tonnes in March. The war in West Asia has led to production cuts by major smelters in the region, which accounts for around 9% of global aluminium output.

 

"Disruptions at Emirates Global Aluminium's AlTaweelah smelter, reduced output at Alba, and earlier curtailments at Qatalum could remove nearly 3mtpa (3 million tonnes per annum) of capacity, almost half of Middle East production," according to ING analysts. 

 

Market participants increasingly view the situation as a "black swan" event, with expectations of significant shortages in the global aluminium market during 2026, Kedia Advisory said. Tight inventories in exchange-monitored warehouses are also supporting prices, it added. Aluminium is finding support at INR 371.4, with a break below potentially testing INR 368.4, Kedia Advisory said.  End

 

US$1 = INR 94.21

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

 

Reported by Afra Abubacker

Edited by Akul Nishant Akhoury

 

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