BigMint’s assessment for spot prices of aluminium ADC12 alloy ingot saw a fall of INR 4,000/tonne (t) to INR 212,000/t w-o-w exw-Delhi NCR. Notably, tense scrap prices were at INR 183,000/t ex-Delhi, marking a weekly decrease of INR 2,000/t. The scrap-to-ADC12 spread was recorded at INR 29,000-30,000/t.
Market sources indicated that tense offers in Chennai are hovering at INR 180,000/t, with spot prices of ADC12 in Chennai ranging between INR 215,000-INR 216,000/t exw on immediate terms, excluding GST.
Declining tense prices impact semi-finished rates
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.
Currently, demand is somewhat lower, and cash movements have been impacted due to the election.
Market insiders have observed that major producers are now gradually receiving previously delayed imported materials. This improvement is helping to lessen pressure on raw material prices, and the availability of scrap in the domestic market has also improved.
A medium-scale manufacturer has reported difficulties in selling at prices lower than those set by major automobile companies. However, given the current local tense prices and the easing of imported consignments, they are now selling at below INR 215/kg and in smaller volumes to maintain regular destocking. However, suppliers await price announcements before taking new orders.
Southern India increasingly prefers direct imports of ADC12
In recent weeks, many ADC12 manufacturers in southern India have preferred to import ADC12 directly rather than importing scrap and producing ingots.
The current spread between tense and ADC12 in the southern market is at INR 34,000-INR 35,000 t.
A local manufacturer in Chennai said the southern region, especially Chennai, is currently seeing a substantial amount of ADC12 exports, particularly from Malaysia and Indonesia, this month. Buyers in Chennai are purchasing ADC12 from Malaysia at $2,530/t CFR, with about 200 t acquired at such prices levels.
The Japanese market has not been actively purchasing, but it is expected to resume activity slowly. Bids of ADC12 from the Japan to the UAE are priced at $2,390/t. However, suppliers find these levels currently unfeasible.
According to BigMint’s assessment, imported tense (6-7%) from the US was assessed at $1,960/t, up by $10/t. Prices of zorba 95-5 from the UK stood at $2,170/t CFR Nhava Sheva. However, three-month futures for aluminium were currently at $2,590/t, showing a $60/t rise w-o-w.
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 and indicative China silicon 441 is at $1,920-1,930/t.
A source noted, “Demand for silicon is currently weak due to a lack of buying interest. Alloy ingot manufacturers, the main users of silicon, stocked up when prices were lower, leading to ample inventory and a slower market”.
Offers, deals:
Wheels offers from the UK to Chennai are at $2,390-2,400/t, CFR Chennai.
Hong Kong wheels are at INR 2,460-2,470/t, CFR Chennai.
UAE tense 8-9% offers are at around $1,900/t, CFR Chennai.
Around 1,800 t of Malaysia ADC12 was concluded last week for $2,380/t, CFR Chennai.
Around 60 t of ADC12 were traded at INR 215/kg, ex Chennai.
Around 50 t of silicon 553 were traded at $1,900/t, CFR Chennai.
Around 30 t of Hong Kong wheels were traded at $2470/t, CFR Chennai.
Outlook
Trade has been limited due to price fluctuations, with manufacturers awaiting price announcements from major automobile companies before accepting new orders. It is anticipated that ADC12 prices may remain rangebound in the near term.