Spot prices of aluminium ADC12 alloy ingots (non-OEM) in Delhi NCR and Chennai fell w-o-w, as per BigMint’s latest assessment. In the Delhi-NCR region, ADC12 spot prices were assessed at INR 207,000/t ex-Delhi, aligning with domestic tense scrap prices which settled at INR 174,000/t ex-Delhi.
Likewise, ADC12 prices in Chennai were reported at INR 209,000/t on immediate payment basis, excluding GST. At the same time, casting scrap prices were at INR 175,000/t ex-Chennai.
The current spread between tense and ADC12 spot levels is at INR 33,000-34,000/t.
The improved availability of materials, coupled with a decline in scrap prices, has contributed to a reduction in the cost of ADC12 alloyed ingots. This combination of factors has eased market pressures, leading to more favorable pricing for buyers.
The market is currently experiencing a significant slowdown, with minimal buying interest and very few transactions taking place.
A buyer source stated: “We have stocked material beforehand and it is not required immediately. So, currently need-based purchasing is going on for small quantities, after holidays we may start enquiring”.
Additionally, amid upcoming holidays in local markets, bid-offer disparity emerged in the market, buyers opted wait and watch mode.
A manufacturer stated “India’s exports of alloy ingots remain subdued, driven by weak overseas demand, especially from Japan, a key market for Indian exports. However, Japan’s automotive demand for aluminium is anticipated to recover in the latter half of 2024, following earlier setbacks from certification issues and recalls”.
Global price trend
Meanwhile, three-month LME aluminium prices hovered at $2,350-2,360/t, a slight uptick w-o-w. Stocks at LME-registered warehouses stood at 899,900 tonnes (t). Aluminium prices rebounded after hovering at three-month lows.
According to BigMint’s assessment, Tense scrap from the Middle East, particularly the UAE, saw a increase of $30/t, settling at $1,730/t. Zorba 95/5 from the UK remained rangebound at $1,950/t CFR west coast, India.
India’s auto major reduces aluminium ADC12 Sept’24 prices
India’s top automobile manufacturer has set ADC12 Sept’24 settlement prices at INR 218,500/t, down INR 3,500/t from last month’s INR 222,000/t. The price cut matched the levels which OEMs anticipated in Sept’24 settlement prices. It is noteworthy amid the decrease in raw material and LME prices. As per BigMint assessment ADC12 price (Automobile-OEM) for Aug is INR 219,000/t ex Delhi, down INR 2,000/t m-o-m.
Japan’s aluminium demand falls
According to the Japan Aluminium Association, Japan’s aluminium demand (domestic and export) fell by 4.7% in the first quarter of 2024, totalling 882,500 tonnes (t). Domestic demand decreased by 4.1% to 849,000 t. Meanwhile, exports dropped significantly by 17.8% to 34,000 t.
The transportation sector, which is the largest consumer of aluminium in Japan, representing 45% of the total demand, saw a 1.2% decline in demand to 382,000 t.
China’s silicon market
Prices of China’s silicon 553 have dropped $20/t reaching $1,740/t CFR Mundra amid easing freight rates. However, buying interest was low because major aluminium alloy manufacturers have sufficient silicon supplies.
Additionally, the freight rate from China to Mundra was heard at $1,980-$2,000/20-foot container.
Domestic scrap market
In the domestic market, tense scrap prices remained rangebound in both Delhi and Chennai. According to BigMint’s assessment, domestic tense scrap prices are now at INR 174,000/t ex-Delhi NCR and INR 175,000/t ex-Chennai. Market participants expect prices to move up in the near term.
Imported offers
ADC12, UAE, CFR Mundra – 2320-50/t.
ADC12, UAE, CFR Japan – 2350-80/t (offers), Bids are as low at 2200-50/t.
Outlook
The market is anticipated to remain sluggish due to uncertainty on the LME and the upcoming holidays. Additionally, price reductions by major automakers have led sellers to lower their offers, potentially leading to further price declines.
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