- Indian imported tags much lower than US, Korean ones
- Indian market faces liquidity crunch, weak demand
Imported aluminium scrap prices in India remained range-bound w-o-w, mirroring London Metal Exchange (LME) future prices, which fluctuated within a limited range.
BigMint’s benchmark assessment for Tense scrap originating from the US was at $1,870/tonne (t), increasing by $5/t w-o-w, while Wheels from the UK stood at $2,455/t, down $35/t w-o-w, both CFR west coast, India.
This week, LME prices remained stable w-o-w at $2,634/t. Meanwhile, stocks at LME-registered warehouses stood at 555,950 t, stable against 558,700 t last week.
Market scenario
A source stated, “The Indian aluminium scrap market is facing liquidity issues and weak demand, with only 30-40% of the total stock (aluminium wires) being sold, as traders struggle to match price expectations. Aluminium wire scrap is being offered at INR 220,000/t, but deals are closing at around INR 215,000/t. In the used beverage cans (UBC) scrap segment, other countries such as Korea are offering better prices at around $1,900/t, whereas Indian levels remain significantly lower at $1,400-1,500/t. Additionally, payment delays are compounding the pressure on market participants. Buyers now require 5-10% advance payments, whereas transactions were previously settled upon loading.”
Meanwhile, the US and EU domestic aluminium markets remained strong, making Indian prices uncompetitive. Prices prevailing in India were lower than those in the US domestic market, which continued to attract higher bids. There was talk of domestic Taint Tabor hot briquetted (HRB) being sold in the US at $2,130-2,150/t, which emphasises the pricing gap with India, where tags were at $2,090/t. US buyers are even willing to pay more, which indicates the strength of their local market compared to the sluggish Indian scenario.
In the domestic market, aluminium extrusion prices rose. New sections scrap offers were up w-o-w to INR 230,000/t ex-Gujrat, with trades at INR 219,000/t.
Domestic scrap prices rise w-o-w
In the domestic market, Tense scrap prices in both Delhi and Chennai rose by INR 1,000/t w-o-w. According to BigMint’s assessment, domestic Tense scrap stood at INR 177,000/t ex-Delhi-NCR and INR 178,000/t ex-Chennai.
China’s silicon prices drop w-o-w
According to BigMint’s assessment, prices of China’s 553-grade silicon increased by $10/t w-o-w to $1,530/t CFR Mundra.
Outlook
Prices are expected to remain range-bound in the near term, with limited movement due to sluggish demand and liquidity constraints. However, there is potential for an upward shift if export offers continue to rise and strong domestic demand persists in Western markets such as the US and EU.
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