- Domestic casting scrap sees firm price trend
- Market outlook stable with selective buying interest
India’s imported aluminium scrap prices remained mixed in the week ended 23 December, despite positive momentum in LME prices, with mixed movements observed across key grades. BigMint assessed Middle East-origin Tense (8-9%) at $1,930/t and US-origin Tense (6-7%) at $2,000/t, both unchanged w-o-w, while Middle East-origin Extrusion 6063 also held steady at $2,655/t. UK-origin Zorba 95/5 inched up $5/t to $2,290/t, and UK-origin Wheel prices gained $5/t to $2,660/t. In contrast, US-origin Taint Tabor HRB (3%) fell $20/t to $2,190/t.
LME prices edge higher w-o-w; inventories steady
At the close on 22 December, LME aluminium three-month prices rose to $2,942/t, up by $62/t w-o-w from $2,881/t on 15 December. Meanwhile, aluminium inventories at LME-registered warehouses remained unchanged at 519,600 t, indicating stable visible supply levels.
The increase in LME aluminium prices was supported by improving demand expectations due to a potential China stimulus and persistent global supply constraints, including capped output, delayed smelter expansions, and ongoing operational disruptions that have tightened overall availability.
Market insights
India’s imported aluminium scrap prices remained largely stable this week, despite a firm undertone in the global aluminium market. The strength in prices was mainly supported by a rise in LME aluminium, which continued to trade above $2,900/t and is widely expected to test the $3,000/t mark in the near term. However, this upward momentum in LME prices did not fully translate into stronger buying interest for imported scrap.
Demand for imported aluminium scrap remained subdued, as elevated price levels discouraged buyers from booking fresh cargoes. Additionally, unfavourable exchange rate movements further increased landed costs, making imports less attractive for Indian consumers. The ongoing holiday season across major supplying regions also contributed to reduced trade activity, limiting both availability and purchasing interest. As a result, buying remained selective and cautious, keeping prices within a narrow range.
In contrast, the domestic scrap market showed greater firmness, with prices trending higher across several casting grades. Secondary aluminium producers increasingly preferred domestic material over imported scrap, driven by quicker availability and lower logistical risk. This shift in sourcing has led to tightness in domestic scrap supply, particularly for casting material, supporting price gains. Among imported grades, Tense continued to witness relatively better demand, reflecting its steady consumption base.
Overall, both domestic and imported scrap prices stayed firm, underpinned by a strong LME environment and supply-side tightness in the domestic market. While current demand for imported scrap remains weak due to high prices, currency pressures, and seasonal factors, the broader market outlook appears stable, with price support expected to persist as long as LME aluminium remains strong.
China silicon
According to BigMint’s assessment, China-origin Silicon Metal 553 prices declined by $35/t w-o-w and were assessed at $1,320/t on a CFR Nhava Sheva basis, pressured by weak downstream demand, high inventory levels, and subdued trading activity in major consuming sectors such as polysilicon and aluminium alloys, which has kept market sentiment soft and limited buying interest.
Outlook
In the near term, India’s imported aluminium scrap prices are expected to rise moderately, as firm LME aluminium prices continue to provide cost support while weak demand, high landed costs, and currency pressures cap upside potential. Buying interest may stay selective through the holiday period, with Tense likely to remain the relatively better-performing grade. Domestic scrap prices are expected to stay firm to slightly higher amid supply tightness and producer preference for local material.
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