Aluminium prices in global as well as domestic markets have been trading near multi-year highs, with LME prices crossing $3,600 per tonne and MCX prices hovering around ₹390/kg levels. The sharp rise is largely driven by structural changes rather than temporary factors.
Unlike earlier cycles—when rising prices quickly led to higher production—today’s aluminium supply cannot respond as easily. Stricter environmental regulations, limited access to affordable energy, and production caps are restricting output growth. At the same time, inventories on major global exchanges remain low, which tightens supply further, supports prices, and reduces the chances of a significant downside.
