- Lower LME and scrap prices pressure ADC12
- Comfortable OEM inventories limit fresh ADC12 purchases
India’s leading automaker reduced its ADC12 settlement price by INR 32,600/t to INR 317,000/t for August 2026, from INR 349,600/t in July, marking a sharp 9.3% m-o-m correction and the third price correction after consistent increases since the beginning of 2026. The reduction reflects weaker market sentiment, declining LME aluminium prices and lower aluminium scrap values, alongside aggressive negotiations with suppliers.
The correction in domestic ADC12 prices has also adversely affected the competitiveness of imported material, particularly amid increased availability of duty-free (FTA) ADC12 imports over the past three months, especially in South India. This has contributed to ample material availability and further weighed on market sentiment. The sharp decline in domestic prices has prompted both suppliers and buyers to reassess procurement levels.
In addition, most OEMs are understood to be carrying comfortable ADC12 inventories, reducing the urgency for fresh purchases and keeping spot buying activity subdued.
The market had been awaiting the leading automaker’s August settlement as a key pricing benchmark. Following the sharp reduction, a similar correction is expected across the domestic market. Current offer levels are heard at INR 320,000-323,000/t in Delhi and INR 310,000-312,000/t in Chennai, although prices could witness further downside if buying interest remains subdued.
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