Indian primary aluminium manufacturers are expected to maintain healthy profitability in FY 2025–26 despite global trade challenges, including the recent hike in US tariffs on aluminium imports. According to a Crisil Ratings report, the US increased aluminium tariffs from 2.55% to 25% on imports from all countries. However, this move has had limited direct impact on Indian exporters, as the US accounts for less than 5% of India's aluminium exports.

Crisil noted that strong operating efficiencies, low-cost production, and a favourable global demand-supply balance will help Indian players sustain profit margins of over $650 per tonne. With nearly half of India's primary aluminium production exported globally, competition may intensify in traditional markets as other exporters divert supplies due to US restrictions.

Despite potential price volatility—driven by macroeconomic uncertainties and LME fluctuations—Crisil expects aluminium prices to average above $2,300 per tonne in FY26. The LME price had moderated to $2,350 in April 2025, down from a peak of $2,700 in March. Still, domestic producers are expected to remain stable, supported by high smelter utilisation rates and disciplined global supply.

(ANI)