- Alloy ingot prices touch 6-month high
- Supply shortages push up scrap prices
Aluminium ADC12 alloyed ingot prices moved up m-o-m across both northern and southern India in March 2025, according to BigMint’s benchmark assessment. This marks a six-month high, amid steadily rising scrap prices.
BigMint’s monthly assessment for the OEM grade of ADC12 stood at INR 217,000/tonne (t) in Delhi, rising by INR 7,000/t m-o-m, and INR 216,000/t in Chennai, up by INR 6,000/t m-o-m.
Tense-grade scrap prices rose by around INR 8,000/t m-o-m, driving an upward movement in ADC12 prices as well. The spread between scrap and semi-finished products narrowed to INR 32,000-33,000/t, showing a decline compared to the previous month.
Meanwhile, three-month London Metal Exchange (LME) aluminium prices increased by $45-50/t m-o-m to around $2,700/t.
OEM-grade ADC12 prices continue uptrend from early Feb
According to sources, most companies in early February quoted INR 212,000-214,000/t for OEM-grade ADC12, with this range becoming the most common for trades.
India’s largest automaker maintained its ADC12 March 2025 settlement price at INR 214,000/t. However, OEMs in northern and southern India eventually started quoting higher prices of INR 217,000-220,000/t due to a shortage of raw materials 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 225,000/t. Also, India is currently trying to directly import ADC12 from Malaysia and Thailand.”
A seller noted, “India’s largest automaker has internally revised its March 2025 ADC12 prices from INR 212,500/t to INR 214,000/t and is expected to set April 2025 prices in the coming week. With expectations of further price increases, many plants are now running at maximum capacity after a long time.”
Export market
ADC12 offers were heard at $2,400-2,450/t from India to Japan in early-March.
Commenting on the European segment, a trader stated, “The European aluminium alloy market is going through a tough time. Demand from manufacturers still has not fully recovered since the COVID slowdown, and there is not enough scrap available, because countries such as India and Far East Asia are buying a considerable amount. On top of that, companies making primary aluminium are using more high-quality scrap to meet the car industry’s need for eco-friendly production. This is making it even harder for alloy makers to get the materials they need.”
China’s silicon prices firm m-o-m
According to BigMint’s assessment, prices of China’s 553-grade silicon were firm m-o-m at $1,510-1,530/t CFR Mundra.
Raw material prices rise
In February 2025, 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 USA was at $1,870/t CFR Nhava Sheva, up slightly by $40/t m-o-m. Meanwhile, Zorba 95/5 from the UK stood at $2,100/t CFR west coast, India, a marginal increase of $20/t m-o-m.
Currently, imported tense scrap originating from the USA was priced at $1,950/t CFR Nhava Sheva, Meanwhile, Zorba 95/5 from the UK stood at $2,150/t CFR west coast, India.
In the domestic market, Tense scrap prices moved up m-o-m in both Delhi and Chennai. According to BigMint’s assessment, prices stood at INR 185,000-186,000/t ex-Delhi and INR 185,000/t ex-Chennai.
Outlook
The ADC12 alloy market is expected to remain strong in the near term, supported by rising raw material costs due to ongoing supply shortages and an expected price hike for April 2025 settlements by automakers. Overseas demand is also anticipated to increase, which could further boost the market. Additionally, the price gap between scrap and semi-finished products narrowed last month, which may lead to price adjustments in the coming month.
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