BigMint’s assessment for spot prices of aluminium ADC12 alloy ingot saw a fall by INR 3,000/t, reaching INR 216,000/t w-o-w exw Delhi NCR. Notably, tense scrap prices were at INR 185,000/t ex-Delhi, marking a weekly decrease of INR 2,500/t. The scrap-to-ADC12 spread has increased to INR 31,000/t.
Market sources indicated that tense offers in Chennai are hovering at INR 188,000/t, with spot prices of ADC12 in Chennai ranging between INR 219,000-222,000/t exw on immediate terms, excluding GST.
Trends in ADC12 market
Amid the decline in tense prices in the northern region, prices of semi-finished products have been impacted, as there was a slow trend in the purchasing inquiries for ADC12.
Market insiders notice that major producers are now starting to receive tense imported materials gradually, even though there have been significant delays. This improvement is helping to ease the pressure on raw material prices and availability of scrap has improved in the domestic market.
A medium-scale manufacturer expressed difficulty in selling below the rates set by major automobile companies. However, considering the local tense prices and the relaxation in imported consignments, and in order to maintain regular destocking, they are currently selling at below INR 218/kg, and in lower volumes.
South India increasingly favouring direct imports of ADC12
Many ADC12 manufacturers in southern India favour importing ADC12 directly instead of importing scrap and producing ingots.
The current spread between tense and ADC12 in south market is at INR 33,000-35,000 t.
According to a manufacturer in the area, “Malaysia is presently exporting a considerable amount of ADC12 to Chennai, indicating a noticeable increase in ADC12 inflow from the Asian region this month. This rise is particularly significant from Malaysia and Indonesia. Additionally, purchasers in Chennai are procuring at $2,585/t from Malaysia, with approximately 200 t of ADC12 purchased from them at $2,585/t, CFR Chennai.”
The Japanese market has not been actively purchasing, but it is expected to resume activity by mid-May. Offers of ADC12 from the UAE to Japan are priced at $2,510-2,520/t. However, suppliers find these levels currently unfeasible.
According to BigMint’s assessment, imported tense (6-7%) from the US was assessed at $1,950/t, down by $60/t. Prices of zorba 95-5 from the UK stood at $2,130/t CFR Nhava Sheva. However, three-month futures for aluminium were currently at $2,530/t, showing a $50/t fall w-o-w.
China’s silicon market
As per BigMint’s assessment, prices of China’s silicon 553 have increased by $50/t, reaching $1,930/t CFR Mundra. Additionally, tentative export prices (FOB) of silicon 441-grade stood at $1,880-$1,920/t.
25 t of ADC12 were sold at INR 215,000/t ex Delhi, recently.
Outlook
Limited trade has been noticed due to price fluctuations, manufacturers wait for price announcements from major automobile company to accept new orders. It is expected that prices of ADC12 may drop in line with tense scrap prices.