India’s imported aluminium scrap prices declined w-o-w despite higher LME aluminium prices, as subdued buying interest and cautious market sentiment continued to weigh on spot prices.
According to BigMint’s latest assessment for CFR Nhava Sheva deliveries, US-origin Taint Tabor HRB 3% scrap prices fell by $30/t w-o-w to $2,820/t, from $2,850/t. Meanwhile, UK-origin Taint Tabor C/S 9-10% scrap prices declined by $20/t to $2,650/t, from $2,670/t.
LME aluminium prices gain traction
Three-month aluminium prices on the LME rose by $10/t, or 0.3% w-o-w, to $3,267/t on 22 September, from $3,257/t on 15 September. Prices remained broadly supported as a firmer yuan and declining LME inventories improved sentiment, while expectations of further monetary tightening and concerns over strong Chinese aluminium output capped gains.
Meanwhile, LME aluminium inventories declined by 1,250 t, or 0.5%, to 242,600 t on 22 September, from 243,850 t on 15 September. Stocks remained close to historically low levels, keeping the underlying supply outlook relatively tight, although high Chinese smelter utilisation and improving regional supply prospects limited the upside.
Market Scenario
India’s imported aluminium scrap market remained subdued this week, as Ganesh Chaturthi holidays slowed demand and kept trading activity limited. Buyers largely remained cautious, resulting in fewer spot enquiries and restricted trade volumes.
In contrast, the domestic aluminium Tense scrap market showed improving demand, with trading activity gradually picking up as buyers started preparing for September requirements. Market enquiries have increased, indicating better buying interest. As competitively priced imported ADC12 inventories continue to decline, alloy producers are expected to return to the market for fresh scrap purchases, which could provide further support to domestic scrap demand in the coming weeks.
Outlook
Imported aluminium scrap prices are expected to remain rangebound in the near term. Improving domestic buying interest and declining imported ADC12 inventories could lend support, while cautious procurement and subdued spot activity may limit significant price gains.
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