Aluminium scrap prices in India inched down this week, with some grades experiencing price increases despite a small decline in LME aluminium prices. At present, buying activities in the market are sluggish as buyers have adopted a wait-and-see approach.
At the time of reporting, the three-month LME prices remained largely stable at $2,560/t with a marginal 1.3% decrease compared to the previous week’s $2,590/t. Stocks were recorded at 487,750 t, marking a 1% decrease w-o-w.
As per BigMint’s assessment, prices of imported aluminium scrap in India have remained lower, reflecting the slowdown of aluminium futures on LME Tense scrap sourced from the US witnessed a marginal $60/t decrease, reaching $1,950/t, while zorba 95/5, originating from the UK, was priced at $2,130/t. Tense scrap from the Middle East, particularly the UAE, remained lower by $60/t at $1,920/t CFR Mundra.
A buyer stated: “Due to the ongoing election process there is less cash rotation in the market. Hence it is hard to do trading activities with smooth cash flow. This lack of liquidity situation is expected to persist till the end of the general elections.”
A trade source mentioned that there is a scarcity of material in extrusion grade, thereby pushing up prices, as seen this week.
A buyer source informed BigMint: “There is a bid-offer disparity in the market for extrusion scrap. Suppliers are not willing to offer material below $2,450-2,500/t.”
Meanwhile, Talk scrap originating from the US and UAE witnessed a decline in prices by over 1% owing to the 2.2% fall in LME copper prices. Notably, copper prices in the LME had hit a 2-year high last week i.e. over $10,000/t levels, which has come down to $9,910/t since.
A trade source mentioned that there is a scarcity of few grades of scrap due to suppliers preferring to sell within the domestic UK market where they can achieve higher prices compared to exporting to India, i.e. local consumption is making material less available for exports.
An alloy manufacturer said, “Prices of imported aluminium scrap have remained relatively lower without significant upward fluctuations. LME prices have seen a slight decline following several weeks of consistent increases. Additionally, trade activities in the market remained at a slower pace and sellers had to lower their offers to liquidate material.”
China’s silicon market
As per BigMint’s assessment, prices of China’s silicon 553 has increased by $50/t, reaching $1,930/t CFR Mundra. Additionally, tentative export prices (FOB) for silicon 441-grade stood at $1,880-$1,920/t.
Domestic scrap market
BigMint’s assessment of tense scrap prices in the domestic market (ex-Delhi NCR) stood at INR 186,000/t. This reflects a slight decrease from the previous week’s INR 189,000/t, ex-Delhi. This slight decline is linked to the downward correction observed in LME prices.
A sources stated, “Tense prices have dropped in Delhi which may put pressure on ADC12 prices in the near term.”
Recent deals
Middle East Tense 8-9% traded at $1,920/t CIF Mundra.
Middle East Shredded Trump few Containers Bought at $2,000/t CIF Mundra.
Spain origin tense 2-3% traded at $2040/t CIF Mundra.
Hongkong wheels bought at $2410/t, CFR Chennai.
Yemen tense (10%) bought at $1940/t, CFR Chennai.
Tense scrap bought at INR 188,000/t, exw Chennai.
Outlook
Limited trade was seen last week due to price fluctuations, This week, the market is expected to receive some particular direction. It is expected that prices will witness a definite rebound.