India: Imported aluminium scrap prices rise w-o-w on LME gains; buying remains cautions

• Supply risks support LME tags despite stock inflows
• Strong demand supports Extrusion scrap prices in Delhi

India’s imported aluminium scrap prices trended upward w-o-w, supported by gains in London Metal Exchange (LME) benchmarks. BigMint assessed UAE-origin Tense scrap at $1,930/tonne (t), up $5/t w-o-w, while US-origin Taint Tabor HRB (2-3%) rose by $30/t to $2,230/t.

UK-origin Zorba 95/5 increased by $20/t, UAE Extrusion 6063 gained $25/t, and UK-origin Wheel climbed up by $30/t.

LME prices increase w-o-w; inventories inch up

At the time of reporting, LME aluminium prices stood at $2,680/t, up by around $40/t as compared to $2,640/t last week.

Meanwhile, aluminium inventories at registered warehouses posted a marginal gain of 1,700 t to 515,600 t from 513,900 t in the previous week.

LME aluminium prices rose, supported by persistent supply-side risks despite uneven demand. China’s production is capped at 45 mnt annually, limiting output growth. Supply fears intensified as Guinea Alumina lost mining licences, threatening ore supplies to major producer Emirates Global Aluminium. Meanwhile, LME aluminium inventories fell sharply by nearly 100,000 t to 375,000 t in early September.

Market insights

Imported aluminium scrap offers continued to track the upward movement in LME prices, which rose to $2,670-2,680/t. UAE-origin Taint Tabor was offered at around $2,360-2,370/t CFR Mundra, while UK-origin Wheels were heard at approximately $2,610/t CFR Mundra.

As LME benchmarks gained momentum, import prices firmed, leading to cautious buying activity. US-origin Taint Tabor HRB 3% offers were heard in the range of $2,240-2,250/t, with suppliers unwilling to go below $2,220/t, citing strong LME support.

Meanwhile, domestic Tense scrap prices edged lower despite active trading. Tense scrap was heard at INR 191,000-194,000/t across northern and southern India, as additional supply entered the market with yards offloading stock ahead of the quarter-end.

In the Extrusion segment, prices held firm at INR 217,000/t ex-Delhi, supported by steady demand from the auto and construction sectors. However, market chatter around BIS inspections at extrusion units made some buyers cautious about finalising large-volume deals.

India’s aluminium ADC12 alloy ingot prices remained steady w-o-w at INR 228,000/t in Delhi and INR 230,000/t in Chennai, according to BigMint’s benchmark assessments.

Silicon price trends

According to BigMint’s assessment, silicon 553 prices from China gained by $10/t w-o-w to $1,390/t CFR Mundra.

Outlook

Looking ahead, sentiment remains mixed. While seasonal demand is expected to pick up post-monsoon, the existing overhang of scrap inventories in the domestic market may limit any significant price upside in the near term. Meanwhile, imported scrap prices are expected to remain firm, tracking the LME levels.