Imported aluminium scrap prices in India experienced a slight increase, supported by the upward trend in LME futures prices and ongoing supply shortages.
At the time of reporting, the three-month LME price was approximately $2,375/t, reflecting a 2.4% increase compared to the previous week’s price of $2,319/t. Stocks were recorded at 554,475 t, showing a 1% decrease w-o-w.
According to assessments by BigMint, aluminium imported scrap prices in India have risen by up to 2.5%, aligning with the upward trend in aluminium futures. Tense scrap from the UAE rose by $30/t to reach $1,880/t, while zorba 95/5, UK origin, moved up by $10/t settling at $2,060/t CFR Mundra.
Market dynamics
Despite the price increase, trade activities have continued at a slower pace due to the LME holiday for Good Friday and Easter, resulting in the closure of Western region markets and disrupted market activities. Furthermore, the ongoing Ramadan period in the Middle East has also contributed to the slowdown in trade activity.
The current lacklustre activity is typical during holiday periods in the market, reflecting a seasonal slowdown.
Many buyers are currently adopting a cautious approach, refraining from making significant purchases and instead opting for only necessary transactions. They are closely monitoring market conditions but are delaying larger volume commitments until after the holiday periods.
On the supply side, a majority of exporters are unable to provide firm quotations due to the holiday disruptions.
Another scrap supplier highlighted that, the market is experiencing shortages not only for casting scrap but also for taint tabor materials, resulting in price hikes and causing bid-offer disparities within the market.
A source informed BigMint, only a select few prominent mills and established ADC12 manufacturers are willing to pay the premium prices for securing raw material to produce alloy ingots, ensuring they meet their contractual commitments with OEMs
Meanwhile, prices of China’s silicon 553 dropped by $50/t, settling at $1,890/t CFR Mundra. The decline was mainly attributed to a lack of demand for the material in the market.
Domestic market
BigMint’s assessment for tense scrap in the domestic market stands at INR 181,000/t. This reflects a slight increase of 0.6% from the previous week’s price of INR 180,000/t, ex-Delhi. However, some scrap suppliers are currently offering tense scrap at a premium price of INR 182,000/t.
A deal for 10 t of aluminium tense scrap was heard at INR 181,500/t.
Recent deals for CIF WC India
A deal for 25 t of US origin taint tabor HRB (2-3%) heard concluded at $1,900/t, CFR Mundra.
Around 50 t of US talk was heard traded at 3M (53.5%), CFR Nhava Sheva and another 25 t was heard concluded for CFR Mundra.
Outlook
Trade activities in the imported aluminium scrap market are anticipated to increase gradually following the conclusion of Ramadan. However, there remains lingering uncertainty due to the upcoming election, which may result in minor fluctuations in price trends in the near term.