- Trading remains thin despite stronger LME support
- Scrap shortages persist, prices remain firm
India’s imported aluminium scrap prices fluctuated by $30-40/t w-o-w, following an uptrend in LME levels, strong global demand and ongoing supply constraints. Meanwhile, aluminium prices on the LME climbed above $2,640/t amid steady demand and marginal rise in inventory.
BigMint assessed Tense scrap from the US at $2,045/t, down by $5/t w-o-w, while Wheels from the UK stood at $2,580/t (both CFR west coast), stable w-o-w, India. Meanwhile, other major scrap grades witnessed gains of $30/t w-o-w.
At the time of reporting, London Metal Exchange (LME) aluminium prices stood at $2,640/t, up by $40/t w-o-w as compared to $2,600/t last week.
Market insights
The market remains quiet, with limited trading activity despite a firmer LME. Customers remain reluctant to accept higher prices, citing ongoing volatility and uncertain market direction.
Bid-offer disparities still persist, making negotiations challenging. A disparity of $30-50/t has been observed in certain imported grades such as Taint Tabor, Tense and extrusion.
Scrap shortage continues, both in domestic and imported segments. Aluminium scrap prices remain firm amid a widening gap between offers and bids. Buyers are cautious with new purchases, pointing to persistent price fluctuations.
Limited availability of imported scrap is keeping prices elevated, while domestic scrap prices remain stable, supported by tight supply and steady local demand.
In Chennai, domestic Tense scrap prices remain steady at INR 200,000/t (ex-Chennai), supported by constrained supply and strengthening local demand.
In the semi-finished segment, ADC12 alloy prices remained strong across both northern and southern regions. A major Indian automaker has raised its ADC12 settlement prices by INR 850/t m-o-m to INR 229,750/t for Aug’25, last seen in Mar’22.
The increase is driven by strong imported aluminium scrap prices and lower aluminium alloy imports. Consequently, the scrap-to-ADC12 spread in July stands largely stable at INR 32,000-33,000/t due to firm scrap prices.
Silicon price trends
According to BigMint’s assessment, silicon 553 prices from China increased by $90/t to $1,405/t CFR Mundra on a w-o-w basis.
Chinese silicon metal prices increased sharply this week, with offers for the 553 grade heard at $1,400-1,410/t CIF West Coast India, while bids were at $1,330-1,350/t. China’s silicon metal prices surged due to widespread production cuts, with 90% of the southern factories operating at 25% capacity. Losses persisted, but supply-side reforms and anti-dumping measures fuelled strong market confidence and steady price gains.
Outlook
Aluminium scrap prices in India are expected to remain firm in the near term, driven by strong global demand, limited supply, and consistent gains on international exchanges. While buying activity remains cautious due to price volatility and significant bid-offer gaps in imported scrap grades.
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