The price of aluminium sheet a key material used across industries saw a significant drop in India during the second quarter of 2025. According to PriceWatch, prices fell to $3,126 per metric ton (Ex-Mumbai), marking a 7.72% decrease compared to the previous quarter.

This price change is important because aluminium sheet is widely used in construction, transportation, packaging, and manufacturing. A shift in its price can impact everything from car manufacturing to real estate projects.

Let’s take a closer look at why prices dropped, what it means for different parts of the market, and what we can expect in the months ahead.

Understanding Aluminium Sheet and Its Uses

Before jumping into market trends, it helps to understand what aluminium sheet is and where it’s used.

Aluminium sheet is a flat, rolled form of aluminium metal. It’s known for being lightweight, strong, and resistant to corrosion. Because of these qualities, it’s used in:

• Buildings (roofing, wall panels, facades)

• Automobiles (car panels, body parts)

• Electronics and appliances (fridge panels, microwave casings)

• Food and packaging (cans, containers, foil)

• Infrastructure and solar projects

With such widespread use, any change in price can ripple through several sectors of the economy.

What Happened in Q2 2025?

From April to June 2025, aluminium sheet prices in India dropped by nearly 8%. This was one of the steepest quarterly declines in recent years.

The New Price:

• $3,126 per metric ton (Ex-Mumbai)

• 7.72% lower than Q1 2025

So, what triggered this decline?

Key Reason: Anti-Dumping Duties on Chinese Imports

One major factor behind this price drop was a policy decision by the Indian government.

In early 2025, India extended and enforced anti-dumping duties on aluminium sheet imports from China more strictly. These duties are meant to protect Indian producers from cheap imports that could harm local industry.

When Chinese imports were limited, local aluminium producers in India saw this as an opportunity to supply more to the domestic market.

But here’s where it backfired:
While supply from China dropped, local production went up and demand didn’t.

So instead of a balanced market, we ended up with too much supply and not enough demand. This created an oversupply, which led to prices falling.

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Another Factor: Weak Demand from Key Sectors

The drop in demand also played a big part in pushing prices down.

Industries that typically use a lot of aluminium sheet weren’t buying as much as expected:

• Construction projects were slower due to funding issues and higher interest rates.

• Automotive manufacturers saw softer sales and reduced production targets.

• Large infrastructure projects didn’t move as quickly as planned.

When demand stays weak and supply keeps growing, prices usually fall and that’s exactly what happened here.

Impact on the Market

🏭 For Buyers and Manufacturers

This price drop is actually good news for companies that buy and use aluminium sheets.

• Their raw material costs go down

• Profit margins can improve

• They may offer more competitive pricing to their customers

So, if you’re a manufacturer making appliances, cars, or building materials, lower aluminium sheet prices help reduce your overall costs.

⚠️ For Aluminium Producers

On the flip side, this is not great news for producers of aluminium sheet in India.

• Their profit margins are shrinking

• Some are sitting on unsold stock

• They may need to cut back on production or lower prices further to keep business moving

Producers were hoping that anti-dumping duties would help improve their position in the market. But the unexpected oversupply is now putting pressure on them instead.

What’s Next? Will Prices Go Up or Down?

Aluminium sheet prices are always moving with changes in supply, demand, policy, and global trends. So, what might happen in the next quarter?

🔹 If Demand Picks Up

If industries like real estate, infrastructure, and manufacturing regain momentum, demand will rise, and prices may start to stabilize or even increase.

🔹 If Production Slows Down

If producers adjust their output to better match actual demand, the oversupply problem could ease, helping prices recover.

🔹 If Global Trends Shift

India isn’t the only country dealing with aluminium supply and demand issues. If global aluminium prices go up or raw material costs rise (like bauxite or energy), local prices might follow.

In Summary

• Aluminium sheet prices in India dropped by 7.72% in Q2 2025, landing at $3,126 per metric ton (Ex-Mumbai).

• The drop was mainly due to:

  • Stricter anti-dumping duties on Chinese imports

  • Increased domestic supply

  • Weaker demand from major industries

• Buyers are benefiting from lower input costs

• Producers are under pressure to manage excess inventory and reduced margins

• The future of prices will depend on whether demand bounces back and supply gets realigned

Right now, the aluminium sheet market in India is going through a correction phase — where supply and demand need to find balance again. For now, it’s a buyer-friendly market, but changes could be on the horizon depending on how industries and policies evolve in the coming months.