Indian Aluminium Sector Set to Thrive Despite Global Trade Turbulence

New Delhi [
India
] May 7 (ANI):
India
n primary
aluminium
Manufacturers are expected to stay in a robust profit-making position throughout this fiscal year, despite facing global trade challenges such as the recently increased U.S. tariffs.
aluminium
According to a report by Crisil Ratings, these imports are included.

The United States increased the tax rate on
aluminium
Imports rose to 25 percent across all nations, which was an increase.
India
‘s
aluminium
The tariff increased from 2.55 percent to 25 percent, but it had only a minor effect.
India
‘s
aluminium
is exported directly because the U.S. accounts for under 5 percent of
India
‘s total
aluminium
export restrictions, which mitigate the direct impacts of the tariff hike.

Crisil Ratings stated that robust operational efficiency, cost-effective processes, and a favorable global supply-demand equilibrium will ensure profit margins remain above an impressive $650 per ton.

With almost 50 percent of
India
‘s annual primary
aluminium
as mentioned in the report, output is being exported to international markets,
India
Producers might encounter increased competition in their usual international markets, since major U.S. suppliers redirect their shipments to different regions.”

Although global demand growth might slow down this fiscal year, surpluses will remain constrained. This is due to the ongoing limitations within the global market.
aluminium
The market has a low risk of over-supply since key smelters in major regions are constrained.
aluminium
-producing countries, including
India
, stated Ankit Hakhu, Director of Crisil Ratings, who added that they have maintained utilization rates consistently over 90%.

Crisil Ratings suggests that the potential for price fluctuations might affect profit margins in the domestic primary sector.
aluminium
Players.”The realizations for local producers are connected to the London Metal Exchange (LME) prices,” according to the report.

Because of the uncertainties surrounding worldwide economic expansion following the US tariff announcements, the
aluminium
Prices on the LME have experienced significant fluctuations and then settled around USD 2,350 per tonne in April 2025, down from their peak of USD 2,700 per tonne in March 2025.

Even with this fluctuation, Crisil predicts that LME prices will likely stay above USD 2,300 per tonne on average throughout the fiscal year, offering some level of steadiness.
India
n producers, said Ankush Tyagi, Associate Director, Crisil Ratings. (ANI)