India: Imported aluminium scrap trade improves on bullish sentiments

India’s market for imported aluminium scrap has observed better trade activities amid evolving exchange markets like the London Metal Exchange (LME).

Buyers are willing to quote higher bids to secure raw materials as some prominent exporters foresee a positive price trend for non-ferrous metals particularly aluminium. 

To place higher bids for overseas material could be seen as local scrap availability in the domestic market seems inadequate amid better consumption levels across Indian regions.

Further, price hikes by primary players in India also uplifted the fundamental sentiments with regular price increases by over $250/t from the last 7 to 10 days till 17 January.

SteelMint’s assessment

• As per  SteelMint price assessment for aluminium tense market from the US,  was last assessed at $1,790-1,820/t on 17 January, CFR Nhava Sheva.
• Current indicative offers for aluminium extrusion scrap from the Middle East hovered at $2,230/t, increased by $100/t reported on 10 January, 2022.
• US talk clean scrap offers were recorded around 51.50% on three-month LME but buyers resist paying despite strengthening exchange price trends and place their bids 0.5% to 1% till yesterday’s trading window.
• SteelMint’s price assessment states the data from normalisation to rationalisation submitted by different channels resulted in $4,675/t, an increase of $145/t w-o-w, for USA-origin aluminium talk clean, CFR Nhava Sheva.

Al LME Trend 

During yesterday’s trading session, three-month aluminium futures and spot prices on the LME surged $108/t against 10 January, 2022. Stocks stood at 395,150 t in yesterday’s closing, down by 18,550 t from 10 January, 2022.

Outlook

In the near-term, market participants anticipate a continuation of the upward price trend. Meanwhile, sellers are likely to propose higher offers in light of the limited scrap accumulation and committed future shipments till mid-February.