Aluminium prices dropped by 65 paise to Rs 249.95 per kilogram on Tuesday in futures trade, as traders pared down positions amid a softening trend in the spot market.

On the Multi Commodity Exchange, August delivery contracts declined by 0.26% to Rs 249.95 per kg, with a total of 1,456 lots traded.

Analysts attributed the decline to reduced demand from consuming industries, which prompted participants to scale back their holdings.