In the second quarter of 2025, aluminium sheet prices in India took a noticeable dip. According to PriceWatch, the average price fell to $3,126 per metric ton (Ex-Mumbai), which marks a 7.72% decline compared to the previous quarter.
This kind of drop matters. Aluminium sheet is a material used everywhere from buildings and cars to appliances and packaging. So when prices go up or down, the effects are felt across many industries.
Let’s break down what caused this recent fall in prices, how it affects different parts of the market, and what could come next.
What is Aluminium Sheet Used For?
Aluminium sheet is a thin, flat piece of aluminium that’s used in a wide range of applications. It’s light, strong, and resistant to corrosion which makes it ideal for:
- Construction: roofing, panels, and siding
- Transport: body parts for cars, buses, and trains
- Packaging: food containers, beverage cans, foil
- Appliances: refrigerators, ovens, and washing machines
- Solar panels and infrastructure projects
Because it’s so widely used, changes in its price tend to impact a lot of sectors from large manufacturers to small workshops.
What Happened in Q2 2025?
Between April and June 2025, the price of aluminium sheet dropped by 7.72%, settling at $3,126 per metric ton. That’s a sharp decline for a single quarter and points to some big changes in the market.
So what caused this drop?
There are two main reasons:
- Government trade policy
- Lower demand from industries
Let’s look at each in more detail.
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1. Stricter Anti-Dumping Duties on Chinese Aluminium
One of the biggest drivers behind this price decline was a decision by the Indian government.
At the beginning of 2025, India extended and started more strictly enforcing anti-dumping duties on aluminium imports from China. These duties are meant to stop foreign companies from selling aluminium in India at unfairly low prices, which can hurt local manufacturers.
The goal was to protect domestic producers and reduce reliance on cheaper imported materials.
But here’s what actually happened:
- With imports restricted, local Indian producers increased their output to meet domestic demand.
- However, demand didn’t grow at the same pace.
- This led to more supply than the market needed, creating an oversupply situation.
- When supply is high and demand is low, prices naturally fall.
So, even though the policy was meant to support local prices, it ended up creating the opposite effect — at least in the short term.
2. Weak Demand from Key Industries
While supply increased, demand remained soft. Some of the largest consumers of aluminium sheet weren’t buying as much as expected.
- The automotive industry was dealing with slower sales and reduced production targets.
- The construction sector faced delays and cautious spending due to higher costs and project uncertainties.
- Large-scale infrastructure projects were moving slowly or on hold.
With fewer buyers and slower industrial activity, aluminium sheet didn’t move through the market as quickly. That meant inventories started to build up, and prices were cut to keep materials flowing.
Who Gains and Who Loses?
Like any market shift, this price drop creates both winners and losers.
✅ Who benefits?
- Manufacturers that use aluminium sheet as a raw material such as appliance makers, auto companies, and packaging businesses now pay less for materials.
- Lower input costs can mean better profit margins, or in some cases, savings passed on to consumers.
❌ Who struggles?
- Aluminium producers and suppliers are under pressure.
- Lower prices mean lower profits.
- Some producers are sitting on unsold stock.
- To stay competitive, they may need to cut production or lower prices even more.
The producers who expected the anti-dumping duties to work in their favor are now facing an oversupplied market and shrinking margins.
What Might Happen Next?
The aluminium sheet market could take a few different paths in the coming months. Here are some key things to watch:
🔄 Demand Recovery
If demand improves in construction, transportation, and infrastructure, the market could stabilize. More buying would help absorb the excess supply and may push prices back up.
🏭 Production Adjustments
Producers might start reducing output to match actual market demand. If that happens, it could help bring supply and demand back into balance, supporting a price recovery.
🌍 Global Market Trends
India’s aluminium prices are also influenced by global markets. Changes in international aluminium prices, raw material costs, or trade agreements could also affect what happens here.
In Conclusion
- Aluminium sheet prices in India fell by 7.72% in Q2 2025, dropping to $3,126 per metric ton (Ex-Mumbai).
- The drop was caused by a mix of higher domestic supply and weaker demand, especially from construction and auto sectors.
- Trade policy changes, including tighter anti-dumping duties, played a key role by reducing imports but also creating room for oversupply.
- While buyers benefit from lower prices, producers face challenges with pricing pressure and inventory build-up.
- The outlook depends on how quickly demand returns and whether producers adjust supply accordingly.
For now, buyers are enjoying a more affordable aluminium sheet market but producers will be watching closely and adjusting strategies to manage the pressure.