Aluminium scrap prices in India remained largely stable with minor fluctuation amid a marginal decline in LME aluminium w-o-w. At present, buying activities in the market are sluggish as buyers have adopted a wait-and-see approach.
At the time of reporting, three-month LME prices remained largely stable at $2,547/t with a marginal 0.2% drop compared to the previous week’s $2,551/t.
Meanwhile, aluminium stocks in LME warehouses surged over 88% to 902,550 t, with a major primary producer Trafigura delivering over 400,000 tonnes (t) for rent deals.
A trader source mentioned, “Currently, demand remains sluggish. Prices have decreased but still seem high, leading buyers to hold off, anticipating further reductions, particularly for tense, extrusion, and TT. Imported consignments from January and February are arriving gradually, slightly easing the material shortage, though it hasn’t been fully resolved.”
As per BigMint’s assessment, prices of imported aluminium scrap in India have within a range, reflecting the slowdown of aluminium futures on LME. Tense scrap sourced from the US witnessed a marginal $10/t increase, reaching $1,960/t, while zorba 95/5, originating from the UK, was priced at $2,170/t.
Tense scrap sourced from the Middle East, particularly the UAE, remained lower by $30/t to $1,890/t CFR Mundra.
An alloy manufacturer informed BigMint, “Prices of tense have been corrected attributed to the easing flow of material in the domestic market. Casting scrap price in the domestic market has also seen a downtrend in prices maintaining the spread between tense and ADC12 at INR 30,000-31,000/t levels.”
Meanwhile, talk scrap originating from the US and UAE witnessed an increase in prices by over 2% owing to the 2.2% rise 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. The surge in LME copper was driven by strong long-term demand and tight supply, sparking shortage fears.
China’s silicon market
As per BigMint’s assessment, prices of China’s silicon 553 have decreased slightly by $10/t, reaching $1,920/t CFR Mundra.
A source mentioned, ” The demand for silicon is currently weak due to a lack of buying interest. Alloy ingot manufacturers, the primary users of silicon, stocked up when prices were lower, resulting in ample inventory and a slower market.”
Domestic scrap market
BigMint’s assessment of tense scrap prices in the domestic market (ex-Delhi NCR) stood at INR 184,000/t. This reflects a slight decrease from the previous week’s INR 186,500/t, ex-Delhi. This slight decline is due to a minor downward correction on the LME and an improved supply.
A sources stated, “Tense prices have dropped in Delhi which may put pressure on ADC12 prices in the near term.”
Recent deals
A deal for 50 t of China silicon 553 was heard at $1920/t, CFR Mundra.
Around 25 t of taint tabor HRB (2-3%) was heard concluded at $2,010/t, CFR Mundra.
A recent deal for 20 t of zorba 95/5 was heard at $2,150/t, CFR Mundra.
Outlook
The market anticipates further price corrections following a consistent increase, potentially influenced by fluctuations in LME aluminium prices.