India’s aluminium alloy imports plunge 33% in August as LME prices climb

India’s imports of unwrought aluminium alloys under HS code 760120 declined 32.7 per cent year on year to 21,771 tonnes in August 2026, from 32,340 tonnes a year earlier, as higher international aluminium prices increased procurement costs and weighed on import demand. The average LME aluminium cash-settlement price rose 3 per cent month on month to USD 3,249.63 per tonne in August from USD 3,155.98 per tonne in July, potentially prompting Indian buyers to defer purchases amid elevated prices.

The August decline followed a modest recovery in July, when imports rose 4.6 per cent year on year to 32,453 tonnes from 31,035 tonnes. Cumulative imports during April-August 2026 fell 12.5 per cent to 122,515 tonnes from 139,951 tonnes in the corresponding period last year.

In value terms, August imports declined 6.3 per cent year on year to USD 84.06 million from USD 89.67 million. However, cumulative import value during April-August increased 14.9 per cent to USD 453.74 million from USD 394.86 million a year earlier. July imports rose 40.4 per cent year on year in value terms to USD 121.99 million from USD 86.92 million. The divergence between import value and volume suggests that higher prices and changes in the composition of imports may have raised overall expenditure despite lower cumulative tonnage.

Malaysia strengthens its position as India's leading supplier

Malaysia remained India's largest supplier of unwrought aluminium alloys during April-August 2026, with shipments rising 53 per cent year on year to 69,597 tonnes from 45,445 tonnes. Malaysia accounted for approximately 56.8 per cent of total imports, highlighting the growing concentration of India's sourcing among leading suppliers.

The UAE ranked second, although shipments declined 40 per cent to 15,297 tonnes from 25,592 tonnes in the year-earlier period. China's supplies fell 9 per cent to 10,330 tonnes, while South Korea's shipments dropped 57 per cent to 2,192 tonnes. Imports from Bahrain contracted 87 per cent to 2,737 tonnes, and Singapore's supplies declined 76 per cent to 1,021 tonnes.

In contrast, imports from Saudi Arabia surged to 5,386 tonnes from 125 tonnes in April-August 2025. Oman supplied 3,080 tonnes, compared with 18 tonnes a year earlier, while Indonesia's shipments reached 2,893 tonnes after no imports were recorded in the corresponding year-earlier period. These increases partly offset lower shipments from several established suppliers.

July imports rise before August contraction

India's unwrought aluminium alloy imports increased 4.6 per cent year on year in July to 32,453 tonnes, supported by higher shipments from Malaysia and the UAE. Malaysian supplies nearly doubled to 17,097 tonnes from 8,784 tonnes, while imports from the UAE rose 30 per cent to 6,182 tonnes. Saudi Arabian shipments increased to 2,204 tonnes from 125 tonnes, and Thailand's supplies rose to 1,121 tonnes from 146 tonnes.

However, imports from China fell 75 per cent to 1,256 tonnes, while Bahrain's shipments declined 80 per cent to 875 tonnes. The subsequent sharp decline in August coincided with higher average LME aluminium prices, which may have raised import costs and encouraged buyers to postpone purchases.

LME aluminium prices strengthen in August

The LME aluminium market strengthened in August after easing in July. The monthly average cash-settlement price rose approximately 3 per cent to USD 3,249.63 per tonne in August from USD 3,155.98 per tonne in July. The average three-month contract price increased to USD 3,251.23 per tonne from USD 3,148.93 per tonne.

The recovery was uneven. LME cash aluminium reached USD 3,373 per tonne on August 11 before retreating to USD 3,182 per tonne on August 20 and recovering to USD 3,222 per tonne by August 28.

Higher LME prices raise the underlying cost of imported aluminium and can discourage overseas purchases when buyers anticipate lower prices or seek to limit procurement costs. The higher August price average alongside the decline in import volumes is consistent with this relationship, although the available data does not establish the precise contribution of prices to the decline.

Overall, India's unwrought aluminium alloy imports weakened during April-August 2026 despite a year-on-year increase in July. Higher international prices may have contributed to the August contraction, while Malaysia's growing share of imports underscores a continued shift in the country's supplier mix.

Note: This article has been shared by SMM and has been published by AL Circle with its original information without any modifications or edits to the core subject/data.