- Imported scrap prices firm despite LME decline
- Extrusions and Wheels scrap premiums rise
India’s imported aluminium scrap prices rose by up to $60-70/t w-o-w, supported by tightening supply of raw materials in the global market because of fluctuating LME prices, which is making sellers cautious.
BigMint assesses Tense scrap from the US at $1,940/t up by $10/t w-o-w, while Wheels from the UK were up by $20/t w-o-w to reach $2,470/t, both CFR west coast, India.
On the London Metal Exchange (LME), aluminium prices remained largely range-bound, with the benchmark price averaging $2,420/t, down 1.8% from $2,465/t last week. Meanwhile, LME-registered warehouse inventories remained range-bound at 419,575 t from 417,575 t last week.
Market sentiments
Despite a decline in LME aluminium prices, offers for imported scrap remained firm. Certain grades, such as Extrusions and Wheels scrap, commanded premiums due to limited availability. Additionally, grades like Zorba and Taint Tabor maintained stable prices, as inconsistent exports from the U.S.–the primary supplier–persist amid strong domestic demand.
Domestic Tense scrap demand in India remains robust, with market participants closely awaiting the release of major automaker prices for June settlement. As a key raw material for alloy manufacturers, these price announcements are expected to influence market sentiment and buying activity in the near term. Meanwhile, supply constraints continue to support firm price levels for scrap.
According to a source, “A new aluminium recycling plant is expected to commence operations in Maharashtra soon, reinforcing the region’s growing role in India’s secondary aluminium sector and supporting further expansion in domestic recycling capacity to meet rising demand, particularly from the automotive and construction sectors.”
Market participants say this signals a continued shift toward sustainable and resource-efficient production methods.
Domestic scrap prices up w-o-w
The prices of domestic tense has also seen consecutive price gain over the past few weeks.
In the domestic market, Tense scrap prices in both Delhi and Chennai inched up by INR 2,000/t compared to last week. According to BigMint’s assessment, domestic Tense scrap stood at INR 194,000/t ex-Delhi-NCR and INR 195,000/t ex-Chennai.
Silicon price trends
According to BigMint’s assessment, silicon 553 prices from China were stable at $1,350/t CFR Mundra on a w-o-w basis. Demand remained low to moderate, as alloy manufacturers preferred aluminum scrap like Tense, which already contains the required silicon content, reducing the need for additional silicon procurement.
Other updates
Novelis produces world’s first 100% recycled automotive aluminum coil: Novelis, an American aluminum producer, has developed the world’s first aluminum coil made entirely from 100% recycled end-of-life automotive scrap. Tailored for the European automotive market, this innovation meets stringent standards for car body outer skin applications. The scrap was sourced through the Automotive Circularity Platform, a collaboration with thyssenkrupp Materials Services, aiming to enhance sustainability in the automotive industry.
Outlook
Market participants remain cautious and are awaiting further updates on scrap collection prices, as strong demand persists amid ongoing supply tightness and uncertainty in LME aluminium price trends.
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