- Scrap-to-alloy spread widens amid price shifts
- ADC12 demand to remain robust through year-end
India’s aluminium ADC12 alloy ingot prices inched up m-o-m in November 2025, primarily due to the positive auto demand following GST cuts.
BigMint’s monthly assessment for OEM-grade ADC12 showed slight price hikes across key regions:
- Delhi: INR 232,000/t, up by INR 2,000/t m-o-m
- Pune: INR 231,500/t, reflecting an m-o-m increase of INR 1,500/t
- Chennai: INR 232,000/t, up by INR 1,000/t m-o-m
These prices are based on 30-day payment terms.
The spread between scrap and semi-finished products saw an m-o-m increase of INR 39,000-43,000/t in both Delhi NCR and Chennai, amid a drop in domestic scrap prices, reflected by improved availability in the domestic market.
Meanwhile, three-month London Metal Exchange (LME) aluminium average prices hovered at around $2,867/t in early November, up by 5% from the previous month’s $2,783/t. Inventories at LME warehouses in November increased by 9% to 551,040 t from 507,182 t in October.
LME aluminium prices rose amid tightening global supply, driven by Century Aluminium’s production cut in Iceland following equipment failure. Concerns grew that China could exceed its 45 mnt output cap, while Beijing’s move to slow industrial capacity growth reinforced expectations of limited supply.
Meanwhile, Japan’s port stocks rose slightly, and China’s aluminium imports jumped 35.4% y-o-y, signalling strong demand. Alcoa’s Kwinana refinery closure and growing aluminium usage in data centre construction have strengthened prospects of a long-term price uptrend.
Market insights
ADC12 offers across north, west, and south India were recorded in the range of INR 233,000-235,000/t, while bids hovered between INR 230,000-232,000/t. Most OEMs are still finalising their November 2025 procurement contracts, with negotiations ongoing.
A secondary alloy producer noted that ADC12 demand has strengthened this month, supported by higher automobile sales, keeping prices firm. Market participants expect ADC12 prices to remain stable through the year-end, further supported by rising raw material costs — especially imported inputs, tracking LME aluminium’s uptrend.
However, several alloy manufacturers continue to favour domestic scrap for its better price viability. The spread between ADC12 and Tense widened this month, driven by stronger ADC12 demand and lower domestic scrap prices amid improved availability.
Alloy imports plunge y-o-y
Imports: India’s ADC12 alloy market continued to witness a sharp contraction in imports during the first nine months of 2025 (9MCY’25), with inbound volumes falling 57% y-o-y. Total ADC12 imports stood at 8,457 t, down significantly from 19,584 t in 9MCY’24.
Raw material price trends
In early November, prices of the basic raw material for aluminium alloys, that is scrap, saw an increase m-o-m. US-origin Tense (6-7%) scrap stood at $2,015/t, up by $15/t m-o-m, while UK-origin Wheels rose by $55/t to $2,665/t. Meanwhile, Zorba 95/5 from the UK stood at $2,250/t CFR west coast, India, up by $65/t m-o-m.
The firm LME trend, supported by supply disruptions and bullish sentiment in the global aluminium market, has pushed up imported scrap offers.
India’s overall aluminium scrap imports increased by 12% to 1.45 mnt in 9MCY’25 from 1.29 mnt in 9MCY’24. Major importers also scaled up procurement amid a shortage of aluminium scrap during the initial months of the year, particularly following the imposition of US tariffs.
Most grades, except for Talk, witnessed an increase in arrivals in 9MCY’25 despite intense price volatility.
In the domestic market, Tense scrap prices dropped by INR 1,000/t m-o-m to INR 190,000/t in Delhi, while in Chennai, prices were assessed at INR 185,500/t ex-Chennai, down by INR 7,000/t. The drop was driven by reduced demand, improved scrap availability in the domestic market, and tighter enforcement of GST compliance, all contributing to downward price pressure.
Silicon price trends
According to BigMint’s assessment, China’s 553-grade silicon prices remained largely steady m-o-m at $1,370/t CFR Mundra, driven by steady demand.
Outlook
ADC12 prices are expected to remain firm across north, south, and west India, supported by strong automobile demand and elevated LME aluminium levels. Year-end procurement activity and improved buying sentiment from OEMs are likely to sustain the upward momentum. Additionally, rising input costs and tight global supply conditions will continue to underpin the market. However, steady availability of domestic scrap may limit sharp price increases. Market participants are also closely monitoring upcoming price settlements from major automakers, which could influence domestic trends in the months ahead.
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