NALCO raises aluminium ingot price by INR 3,600/t as LME benchmark strengthens

LME prices gain 2% since 31 Aug on tight physical availability LME inventories remain near their lowest levels since 1990 National Aluminium Company Ltd. (NALCO) has raised its IE10 aluminium ingot price by INR 3,600/t, or 1%, to INR 365,200/t. The revised price is effective from 8 September 2026, compared with INR 361,600/t on 31 August. LME aluminium strengthens amid tight inventories The LME three-month aluminium contract rose to $3,312/t in the latest available data, up 2.2% from $3,242/t on 31 August. The contract climbed steadily through early September, reaching above $3,300/t as tight physical availability continued to support prices. LME aluminium stocks stood at 244,525 t on 8 September, down 2,300 t, or 0.9%, from 246,825 t on 31 August. Stocks have remained near their lowest levels since 1990. The continued drawdown has kept supply tight despite expectations of some improvement in Middle Eastern production. EGA has restarted 25% of the reduction cells at its Al Taweelah smelter, with 315 of 1,262 cells back in operation. The company is targeting full production in the first quarter of 2027. Meanwhile, aluminium inventories on the Shanghai Futures Exchange have declined for 12 consecutive weeks, indicating continued tightening in China's domestic physical market. Market participants are also watching for stronger seasonal demand in China. Domestic aluminium prices continue to rise Domestic aluminium producers have also continued to raise prices during the period. BALCO's P1020 price increasedto INR 375,250/t on 8 September from INR 370,250/t on 31 August. The increase of INR 5,000/t represents a gain of 1.4%. Hindalco's comparable price roseto INR 368,500/t on 4 September from INR 365,750/t on 2 September, an increase of INR 2,750/t, or 0.8%. The latest domestic price increases broadly align with the recovery in global aluminium prices. BALCO recorded the strongest increase among the three producers during the period, while NALCO's latest revision partially reflects the firmer LME market.