India: Aluminium imported scrap prices dip w-o-w in line with LME tags

• Scrap shortages support firm prices
• Buyers cautious amid price volatility

India’s imported aluminium scrap prices dipped w-o-w, following a decline in LME levels. However, the decline was limited, not as much as buyers had expected, due to a persistent shortage in the market, supported by strong global demand.

BigMint assessed Tense scrap from the US at $2,020/t, down by $5/t w-o-w, while Wheels from the UK stood at $2,575/t, down by $5/t w-o-w, both CFR west coast, India.

At the time of reporting, London Metal Exchange (LME) aluminium prices stood at $2,586/t, down by $20/t w-o-w as compared to $2,606/t last week.

Market insights

Aluminium scrap shortages continued to persist, leading to prices holding firm and not easing as expected by many buyers. Cautious purchasing behaviour prevailed amid price volatility and limited availability of imported scrap.

Availability was tight, with continued shortages in Section and Tense scrap observed.

Bid-offer disparities were still evident across certain grades, such as Taint Tabor, Tense, and Extrusion, where gaps of up to $30-40/t were observed.

In Chennai, domestic Tense scrap prices traded at above INR 200,000/t ex-Chennai, driven by tight supply conditions and firming local demand.

In the semi-finished segment, ADC12 alloy prices remained strong, supported by elevated imported and domestic scrap costs. July settlement prices by a leading automaker rose m-o-m, reinforcing the bullish trend.

India’s aluminium ADC12 prices are expected to see an increase m-o-m for July 2025 settlements, following tight raw material supply and a major automaker’s price hikes for July.

Silicon price trends

According to  BigMint’s assessment, silicon 553 prices from China increased by $125/t to $1,315/t CFR Mundra on a w-o-w basis.

Outlook

Prices are likely to remain range-bound amid continued supply shortages and ongoing geopolitical tensions. However, buying activity is expected to remain low to moderate, as market participants stay cautious due to prevailing uncertainties and the volatility in LME aluminium prices.