Aluminium is all around us in the buildings we live in, the cars we drive, the appliances we use, and even the food packaging we throw away. One of the most commonly used forms of aluminium is aluminium sheet thin, flat pieces of metal used in a wide range of industries.
Recently, aluminium sheet prices in India have taken a noticeable dip. According to PriceWatch, prices fell by 7.72% in the second quarter of 2025, bringing the cost down to $3,126 per metric ton (Ex-Mumbai). That’s a sharp drop in just three months.
But why did this happen? And what does it mean for businesses and consumers?
Let’s break it down in plain terms.
What Is Aluminium Sheet Used For?
Aluminium sheet is a flat, flexible material that’s strong, lightweight, and rust-resistant. Because of these qualities, it’s used in many areas of daily life and business:
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Construction: Roofing, wall panels, and insulation
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Transportation: Car bodies, buses, and railway coaches
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Packaging: Food containers, beverage cans, and foil
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Appliances: Refrigerators, ovens, and air conditioners
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Industrial: Solar panels, equipment housings, and more
Basically, aluminium sheet is everywhere and when prices shift, the impact is widespread.
The Price Drop: What Happened in Q2 2025?
Between April and June 2025, aluminium sheet prices in India fell to $3,126 per metric ton, marking a 7.72% decrease from the previous quarter. That’s not just a small adjustment it’s one of the more significant drops seen in recent times.
Let’s explore the key reasons behind this decline.
Reason 1: Anti-Dumping Duties on Chinese Imports
One of the biggest factors behind the price drop has to do with trade policy.
In early 2025, the Indian government extended and tightened anti-dumping duties on aluminium imports from China. These duties are meant to prevent cheap, underpriced aluminium products from flooding the Indian market, which could hurt domestic producers.
By increasing these duties, the government aimed to protect local manufacturers and reduce dependency on Chinese imports.
For latest updates, price queries, demand forecasts, and supplier information related to aluminium sheet prices, submit your request here: https://www.price-watch.ai/contact/
So why did prices fall instead of rising?
Great question. It seems logical that limiting imports would create less competition, allowing local prices to rise. But in this case, something else happened:
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With Chinese products restricted, Indian producers increased their output to fill the gap.
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However, demand didn’t increase at the same rate.
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That led to a situation where more aluminium sheet was available than was being used.
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When supply is higher than demand, prices usually come down and that’s exactly what happened.
So, even though the goal was to protect local pricing, the market ended up with too much aluminium, pushing prices lower instead.
Reason 2: Slower Demand Across Industries
At the same time as supply increased, demand from key industries remained sluggish.
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The automobile sector is still facing production delays and cautious consumer buying.
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The construction industry has been moving slowly due to high costs and uncertain funding.
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Large infrastructure projects have either been delayed or progressing at a slower pace than expected.
This means that many of the regular buyers of aluminium sheet were either buying less or postponing their purchases which further added to the oversupply issue in the market.
The Result: Oversupply and Lower Prices
In simple terms, supply went up, but demand didn’t, leading to excess stock in the market.
To keep materials moving and avoid building up unsold inventory, sellers started to reduce their prices and that’s how we ended up with a nearly 8% price fall in just one quarter.
Who Benefits and Who Suffers?
✅ Winners: Aluminium Sheet Buyers
For companies that use aluminium sheets in their products — like appliance manufacturers, carmakers, and packaging companies — the price drop is welcome news.
Lower raw material costs can:
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Help save money on production
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Improve profit margins
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Possibly lead to more competitive product pricing
❌ Losers: Aluminium Sheet Producers
For aluminium manufacturers and suppliers, this is a more difficult time. Many had hoped that the anti-dumping duties would help boost domestic sales and stabilize prices. But instead, they’re dealing with:
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Falling prices
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High stock levels
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Thinner profit margins
If this situation continues, some producers may be forced to slow down production or offer even more discounts to keep up with the competition.
What Could Happen Next?
Looking ahead, the aluminium sheet market in India could go in a few different directions, depending on how certain factors play out.
1. Demand Recovery
If industries like construction, automotive, and infrastructure start picking up speed, demand for aluminium sheet will rise. That could help stabilize or even push prices back up.
2. Production Adjustments
If local producers slow down output to better match the market’s actual needs, it could help prevent further oversupply and support prices.
3. Global Influence
Aluminium is a global commodity, so international prices, trade agreements, or changes in raw material costs could also affect the local market. A recovery in global demand or a cutback in global supply might help lift prices in India too.
In Summary
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Aluminium sheet prices in India fell by 7.72% in Q2 2025, reaching $3,126 per metric ton (Ex-Mumbai).
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The drop was mainly caused by stricter anti-dumping duties on Chinese imports, which reduced foreign competition but led to higher domestic supply.
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At the same time, demand stayed weak in key sectors like construction and autos.
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This created an oversupply, forcing sellers to cut prices.
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Buyers are benefiting, but producers are under pressure.
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The outlook for the rest of 2025 depends on how demand and production levels adjust in the coming months.
For now, the market is finding its footing again. If demand starts to improve and producers balance their output, prices may begin to recover. Until then, it remains a wait-and-watch situation for everyone involved.
