- Imported scrap prices fall amid weak demand
- US and UK Taint Tabor prices decline w-o-w
India’s imported aluminium scrap prices declined w-o-w, tracking lower LME aluminium prices. Very weak local demand and limited buying interest also weighed on market activity.
According to BigMint’s latest assessment for CFR Nhava Sheva deliveries, US-origin Taint Tabor HRB 3% scrap prices fell by $50/t w-o-w to $2,770/t, from $2,820/t. Meanwhile, UK-origin Taint Tabor C/S 9-10% scrap prices declined by $25/t to $2,625/t, from $2,650/t.
LME aluminium prices ease w-o-w
Three-month aluminium prices on the LME declined by $15/t, or 0.5% w-o-w, to $3,252/t on 29 September, from $3,267/t on 22 September. Prices softened as expectations of improving supply and strong Chinese output weighed on market sentiment.
However, tight global availability and low LME inventories continued to provide some support. China’s primary aluminium output reached a record monthly level in August, raising concerns over higher supply. Expectations of further US rate hikes and a stronger dollar also limited upside.
Meanwhile, LME aluminium inventories declined by 1,225 t, or 0.5%, to 241,375 t on 29 September, from 242,600 t on 22 September. Stocks remained near multi-decade lows, indicating continued tightness in readily available metal.
However, the inventory draw was not enough to offset bearish sentiment. High Chinese smelter utilisation and expectations of regional smelter restarts continued to weigh on the market.
Market Scenario
India’s aluminium scrap market remained subdued this week, with both imported and domestic prices declining w-o-w. Imported scrap prices weakened alongside lower LME aluminium prices, while very weak local demand kept buyers cautious.
Ganesh Chaturthi holidays further slowed trading activity, resulting in fewer enquiries and limited spot transactions. The domestic aluminium scrap market also witnessed a decline amid subdued consumption and weak buying interest.
Buyers largely continued with a wait-and-watch approach. This kept overall market activity and price sentiment under pressure.
Outlook
Imported aluminium scrap prices are expected to remain under pressure in the near term. Very weak local demand and cautious procurement are likely to limit buying interest.
Lower LME aluminium prices could continue to weigh on replacement costs. However, tight LME inventories may provide some downside support.
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