- Buyers exploring Malaysian, Thai material due to FTA benefits
- Import costs stand at around 7-8% lower than domestic material
India’s import enquiries for ADC12 alloy increased notably during the week ended 29 May 2026 despite firm Asian offers, as elevated domestic ADC12 prices continued encouraging buyers to explore imported material, particularly from free trade agreement (FTA) countries such as Malaysia and Thailand.
Market participants indicated that imported ADC12 remained more competitive than domestically produced alloy across several Indian regions despite firmer Asian offers supported by higher aluminium scrap costs. The widening price gap has resulted in stronger buying interest from OEMs and select secondary producers, particularly in southern India.
Landed prices of Malaysia-origin ADC12 in Chennai were assessed at around INR 342,000-343,000/t, while Thailand-origin material was heard at INR 345,000-346,000/t. In comparison, domestic ADC12 prices for automobile OEM-grade material on an ex-works Chennai basis were significantly higher at INR 372,000-375,000/t.
This translated into an import price advantage of nearly INR 20,000-30,000/t, equivalent to a discount of around 7-8% compared to domestic material. The sustained price disparity continued to support higher import enquiries amid elevated domestic quotations.
Market participants attributed the pricing advantage mainly to favourable FTA benefits enjoyed by Malaysia and Thailand, along with the absence of import duties on aluminium scrap in their production cost structure. In contrast, Indian secondary producers continue paying nearly 2.5% duty on aluminium scrap imports, increasing domestic alloy production costs and reducing competitiveness against imported material. Acute scrap shortages and limited imported scrap arrivals also lifted production costs.
Meanwhile, offers for Middle East-origin ADC12 were heard at $3,370-3,380/t CIF West Coast India. Import enquiries for Middle East-origin material from buyers in western and northern India also increased in recent weeks due to comparatively competitive pricing against domestic offers.
Asian seaborne ADC12 market remains firm
Asian seaborne ADC12 prices edged higher during the week amid persistently firm aluminium scrap prices and tight global scrap availability. Chinese ADC12 export offers for July-August shipments were heard at $3,380-3,450/t CIF Japan, with a trade concluded at nearly $3,430/t CIF Japan for July shipment cargoes.
Domestic China ADC12 prices also strengthened during the week, with offers heard at RMB 23,000-23,500/t ($3,390-3,465/t) ex-works compared to RMB 22,900-23,100/t ($3,375-3,410/t) a week earlier. Market participants attributed the increase to elevated scrap procurement costs and improved sentiment in the secondary aluminium market.
Meanwhile, offers from other regions also remained firm. Taiwan-origin cargoes were heard at nearly $3,550/t delivered Japan for June shipments, while July cargoes from Europe were offered around $3,500/t CIF Japan. Material from the Middle East and Africa remained comparatively lower, with offers heard at nearly $3,380/t and $3,350/t CIF Japan, respectively.
Market participants noted that tight global scrap availability continued to limit room for discounts in ADC12 pricing. An Asian producer noted that scrap prices remained extremely high, leaving little room for discounts in alloy offers.
Outlook
BigMint expects India’s ADC12 import enquiries to remain firm in the near term as domestic alloy prices continue trading at elevated levels amid tight scrap availability and higher raw material costs. At the same time, firm Asian ADC12 offers and rising global scrap prices are likely to keep import prices supported in the coming weeks.
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