- Improving exports from India to squeeze scrap supply
- Maruti Suzuki records highest sales in Jan’25
In February 2025, aluminium ADC12 alloyed ingot prices edged up m-o-m across both northern and southern India, according to BigMint’s benchmark assessment. This marks the first increase m-o-m after a continuous decline over the past nine months.
BigMint’s monthly assessments for the OEM grade of ADC12 stood at INR 210,000/tonne in Delhi, rose by INR 2,000/t (t) m-o-m in Delhi and INR 209,000/t in Chennai, by INR 1,000/t in Chennai m-o-m.
In last few weeks, northern India-based manufacturers offered ingots above the automaker’s settlement prices for February 2025 i.e. at INR 208,000-209,000/t due to higher scrap prices and shortage of raw material, while in the south, material was being offered at INR 209,000-211,000/t.
Notably, many manufacturers were operating at a loss, which added pressure on the market. These financial difficulties have presisted for several months now.
Meanwhile, three-month London Metal Exchange (LME) aluminium prices increased by $20-25/t m-o-m to around $2,636/t.
OEM-grade ADC12 prices continue to rise in early-Feb
As per sources “In early-February, most companies quoted INR 212,000-214,000/t for OEM-grade ADC12, making this range the most preferred for trades. A source highlighted, India’s largest automaker kept ADC12 February 2025 settlement prices at INR 207,900/t. However, OEMs in northern and southern India have started quoting INR 211,000-212,000/t, owing to a shortage of raw material in the market.”
The scarcity of raw materials is linked to their increasing prices, which has made sourcing more difficult for ADC12 manufacturers.
A manufacturer stated “Driven by supply challenges in the raw material segments, some ADC12 sellers offered OEM-grade material at up to INR 217,000/t”.
As per market participants, “Sourcing raw materials has become increasingly difficult as costs continue to rise, leaving many manufacturers operating at a loss for months. Looking ahead, the countries that supply scrap to India are now imposing export restrictions. This move is likely to create a significant shortage of scrap within India, further driving up raw material prices. As a result, we can expect the price of ADC12 to rise as well, adding additional pressure on industries already struggling with escalating costs.”
Export market
ADC12 offers were heard at $2,480-2,520/t from India to Japan in January 2025. These values continued to prevail in early-February.
Raw material prices rise
Prices of the basic raw material for aluminium alloys, that is scrap, saw an increase m-o-m. BigMint’s assessment for Tense scrap originating from the UAE was at $1,810/t CFR Nhava Sheva, up slightly by $10/t m-o-m. Meanwhile, Zorba 95/5 from the UK stood at $2,080/t CFR west coast, India, a marginal decrease of $10/t m-o-m.
Currently, imported tense scrap originating from the UAE was prices at $1,805/t CFR Nhava Sheva, Meanwhile, Zorba 95/5 from the UK stood at $2,080/t CFR west coast, India.
In the domestic market, Tense scrap prices remained range-bound m-o-m in both Delhi and Chennai. According to BigMint’s assessment, prices stood at INR 175,000/t ex-Delhi and INR 176,000/t ex-Chennai.
The scrap-to-semi-finished spread was at INR 33,000-35,000/t, lower m-o-m.
Maruti Suzuki’s sales rise in Jan’25
In January 2025, Maruti Suzuki India Limited recorded its highest-ever monthly sales of 212,251 units. This included 177,688 units in domestic sales, marking its best performance in the segment.
Non-OEM ADC12 prices up
BigMint’s monthly assessments for the non-OEM grade of ADC12 stood at INR 203,000/t in Delhi and INR 204,000/t in Chennai, both up by INR 1,000/t m-o-m.
China’s silicon prices firm m-o-m
According to BigMint’s assessment, prices of China’s 553-grade silicon dropped by $25/t m-o-m to $1,520/t CFR Mundra.
Freights from China to Mundra for 20-foot containers stood at $1,700-1,800.
Outlook
The ADC12 alloy market is likely to strengthen in the near term, driven by rising raw material costs and an expected recovery in overseas demand. Additionally, the spread between scrap and semi-finished products narrowed last month, which could create room for adjustments in the coming month.
Leave a Reply