- China’s aluminium imports drop 11% in Feb’25
- Extrusion scrap procurement slows due to high prices
India’s imported aluminium scrap prices dropped by up to $75/t w-o-w following a decline in LME prices. However, buyers awaited further price corrections.
BigMint’s benchmark assessment for Tense scrap originating in the US was at $1,945/tonne (t), decreasing by $15/t w-o-w, while Wheels from the UK stood at $2,455/t, down by 3% w-o-w, both CFR west coast, India.
This week, aluminium prices on the London Metal Exchange (LME) decreased by 2% to $2,616/t from last week’s $2,662/t. Meanwhile, stocks at LME-registered warehouses stood at 480,250 t, down 3.5% from 497,275 t last week.
Domestic scrap prices rise w-o-w
In the domestic market, Tense scrap prices in both Delhi and Chennai inched up by INR 2,000/t as compared to last week. According to BigMint’s assessment, domestic Tense scrap stood at INR 188,000/t ex-Delhi-NCR and INR 188,000/t ex-Chennai.
The domestic scrap market is facing challenges due to delayed arrival of labourers after Holi, ongoing furnace maintenance, and billing issues, leading to uncertainty and cautious sentiment among buyers ahead of the fiscal year-end.
According to sources, “The aluminium scrap market is experiencing a bid-offer disparity, likely due to material shortages. Procurement is primarily focused on Tense and Zorba scraps, causing a cautious market outlook.”
Additionally, plants in south India especially require Tense scrap, indicating regional demand shifts. However, there is a reluctance to procure extrusion scrap due to high offers, currently around INR 215,000/t, leading to limited availability in the market.
A trader source informed, “Demand for Taint Tabor and extrusion scrap remains robust, with buyers willing to pay a premium to secure material.”
A major player in India is set to launch a new wire rod (CG grade) plant in two months, utilising P1020 ingots. This expansion is expected to drive an increase in aluminium demand within the country.
One of the major players has set the asking price for UBC scrap at INR 174,000/t for its new plant, with a one-week credit payment terms. However, bids remain low and are not workable at the moment.
Recently, a deal for 50 t of extrusion 6063 scrap was heard at INR 211,000/t ex-Delhi.
Chinese market updates
According to BigMint’s assessment, prices of China’s 553-grade silicon increased by $25/t w-o-w, reaching $1,490/t CFR Mundra. Additionally, freight rates for a 20-ft container from China to Mundra were recorded at approximately $1,400.
China’s primary aluminium imports dropped by 11% in February due to closed import arbitrage and higher domestic production. Imports from Indonesia and India fell by 72% each. Russia became the largest source, with imports rising 50%. Strong domestic production was driven by high profit margins, aided by a sharp fall in alumina prices.
Outlook
Buyers anticipate further corrections in both imported and domestic scrap prices. As a result, market activity is expected to stay within a low to moderate range, with most participants engaging in need-based buying.
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