India: Imported aluminium scrap prices increase w-o-w; LME aluminium edges up

• Cautious buying limits imported scrap trades
• Weak demand likely to cap further price gains

India’s imported aluminium scrap prices increased w-o-w, supported by slightly stronger LME aluminium prices.

According to BigMint’s latest assessment for CFR Nhava Sheva deliveries, UK-origin zorba 95-5 scrap prices rose by $15/t w-o-w to $2,700/t, while

LME aluminium edges up w-o-w

Three-month aluminium prices on the London Metal Exchange (LME) traded slightly higher w-o-w, closing at $3,175/t on 21 July against $3,167.5/t on 14 July, up by $7.5/t, or 0.2% w-o-w.

Meanwhile, LME aluminium inventories declined by 4,825 t, or 1.7% w-o-w, to 279,775 t on 21 July from 284,600 t on 14 July.

LME aluminium prices edged up w-o-w, supported by declining exchange inventories and continued concerns over tight global supply. Although production has gradually improved following the easing of disruptions in the Middle East, lower LME stocks and ongoing supply-side uncertainties continued to underpin market sentiment and keep prices firm.

Market scenario

Market sentiment remained weak and cautious amid continued volatility in LME aluminium prices. Limited buying interest and sluggish spot activity prompted buyers to procure only immediate requirements, resulting in muted trading and a weak imported scrap market, with price variations persisting across grades.

On the domestic front, aluminium scrap prices showed mixed trends during the week. Casting-grade scrap prices in northern India declined amid subdued buying activity, while other scrap categories recorded gains on improved demand. Meanwhile, casting-grade scrap prices in southern India remained largely stable w-o-w.

Chinese silicon prices

According to BigMint’s latest assessment, China-origin Silicon Metal 553 prices remained stable w-o-w at $1,350/t CFR Mundra, amid balanced market fundamentals, firmer Chinese export offers, and comfortable supply availability.

Outlook

Imported aluminium scrap prices are expected to remain stable to firm in the near term, supported by firm LME aluminium prices and lower exchange inventories. However, weak buying interest and cautious procurement are likely to limit significant price gains.