- Indian scrap imports hit as US, ME see strong domestic demand
- Leading automaker expected to lift ADC12 ingot prices in May’25
Aluminium ADC12 alloyed ingot prices increased m-o-m, to a seven-month high, across both northern and southern India in April 2025, according to BigMint’s benchmark assessments. Ingot prices were propelled by steadily rising scrap tags.
BigMint’s monthly assessment for the OEM grade of ADC12 stood at INR 226,000/tonne (t) in Delhi, rising by INR 9,000/t m-o-m, and INR 228,000/t in Chennai, up by INR 12,000/t m-o-m.
The spread between scrap and semi-finished products increased to INR 42,000-43,000/t compared to INR 32,000-33,000/t in the previous month.
Meanwhile, three-month London Metal Exchange (LME) aluminium prices hovered at around $2,700/t in March, up by 1.5% m-o-m, with an average of around $2,649/t. At the time of reporting, LME aluminium prices had declined to $2,382/t.
OEM-grade ADC12 prices see uptrend
According to sources, most companies in early April quoted INR 230,000-235,000/t for OEM-grade ADC12. Deals were observed at INR 228,000-232,000/t in the north and INR 230,000-235,000/t in the south.
Additionally, strong domestic scrap demand in the US led Indian buyers to pull back from trading with the country.
Meanwhile, Middle East’s offers, particularly for Extrusion, Taint Tabor, and Tense, remained high due to strong domestic demand, driving up export offers. Additionally, market activity remained quiet last month due to the Ramadan period.
A source stated, “The expected volume of US- and UK-origin red and yellow metals is currently not being supplied, with these metals either in lower quantities or entirely absent. This shortfall is largely due to a significant decline in automobile shredding in both regions, driven by Trump’s tariffs, which has led many to stop selling their old vehicles.”
A domestic market participant observed, “Despite the recent dip in LME, scrap prices remain high due to limited availability. Market participants had not expected such a shortage and are now running on low inventories. Imports from Malaysia are facing BIS hurdles, and landed costs are at around INR 230,000/t. As a result, alloy ingot manufacturers are struggling to produce and supply enough to meet demand. As a result, higher prices remained supported.”
Trades were reported for ADC12 from Malaysia at around $2,600-2,640/t CFR Chennai.
Export market
ADC12 offers were heard at $2,380-2,420/t from India to Japan in March.
Offers for ADC12 from the UAE to Japan were heard at $2,460/t.
China’s silicon prices dip m-o-m
According to BigMint’s assessment, prices of China’s 553-grade silicon dropped by $40-50/t m-o-m to $1,440-1,450/t CFR Mundra.
Raw material price trends
In March 2025, prices of the basic raw material for aluminium alloys, that is scrap, saw a rise m-o-m. US-origin Tense scrap inched up by $70/t to $1,930-1940/t, while UK-origin Wheels rose by $50/t to $2,500/t.
However, recently, scrap prices have dropped. Imported Tense scrap originating from the US was priced at $1,850/t CFR Nhava Sheva, dropping by $40/t w-o-w, while Zorba 95/5 from the UK stood at $2,130/t CFR west coast, India, down by $50/t w-o-w. This points to fluctuations in scrap prices.
In the domestic market, Tense scrap prices remained range-bound m-o-m in both Delhi and Chennai. According to BigMint’s assessment, prices stood at INR 182,000-184,000/t ex-Delhi and INR 185,000/t ex-Chennai.
Outlook
It is expected that a major automaker may raise prices for May 2025, as medium-scale alloy ingot manufacturers are also finding it difficult to supply amid such shortages. This may open doors for a price rise.
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